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Obviously, search engines could get even better...but I still do find google near-miraculous. It's very easy to take for granted what happens on the net, but it's worth putting yourself back into the world of ten years ago, and reminding yourself just how far we've come.
As to using PowerPoint for a presentation on Open Source being "ironic", no, I don't think so at all. If you've followed my thoughts on open source over the years (or even just the "paradigm shift" presentation), you will see that I consider the licensing angle (free vs. proprietary) relatively uninteresting, especially when used as a litmus test. I have always advocated using the handiest tool for the job. And for presentations, Powerpoint and other proprietary tools work just fine. Useful software gets created under both free/open source and proprietary models. Just because I'm fond of pointing out to proprietary software vendors the many benefits of open source software development models, doesn't mean that I believe it's the only way to produce software.
Would you consider it ironic that I used a piece of desktop software to make the case that the really interesting things in software are network-related? Sure, I think that amazon and google and itunes are more interesting than powerpoint, but that doesn't mean that I won't use a good piece of desktop software when I need it.
We need to get past either-or. To me, the whole open source movement was about recognizing some things that were under-valued, not about saying that anyone who doesn't already know these things is bad. Frankly, I see proprietary software vendors learning a lot from open source, and open source vendors and projects learning from proprietary software. The best of breed systems these days (whether Amazon, Google, or Mac OS X) actually tend to be a melange of proprietary and open source software.
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I applaud RedHat's decision to cut loose their basic workstation distribution as a sponsored open source project (Fedora). Despite the outcry from some quarters of the Linux community, I think it showed an understanding of the symbiosis between the two development models. Like Sun/OpenOffice and Netscape/Mozilla before them, they seem to be on the leading edge of a new synergistic software development model for the future.
I do think you undervalue licensing as an issue, especially in light of its economic impact as an installed base scales in a business environment. The city of Austin, TX or the Israeli Department of Commerce aren't deploying OpenOffice because it's open source -- they're doing it because it meets their needs at a lower total cost of ownership. I predict we're really going to see some movement when the Windows and Office 2000 products hit end of life next year.
But at its core, the paradigm shift you're talking about depends more on open standards than on a software development model. The ISA bus drove the PC revolution, TCP/IP engendered the Internet, and SGML-derived markup took it to the masses. But less than 2% of the desktops on the Internet have a browser than can reasonably render CSS2, a standard that is more than five years old now. Don't get me started on PNG and SVG. Browser hacks still waste far too much of every good web designer's time. This time and money could be better spent.
Finally, you mention OS X as a best of breed. I'll certainly agree with you there. Lots of cool stuff going on at Apple since Steve came back.