Do bear in mind, Mike, that free and cheap is exactly what Blackmagic Design has built their business plan on. And it's worked. Seems to be working OK for Apple as well. And no, I don't own BMD, nor do I work there any more - but I did and I still keep in close contact with the guys. The free/cheap business model works and it works because of volume. Spend the money on R&D (and efficiently, very efficiently in BMD's case - talk to any of the now very, very happy engineers at Davinci), reduce the cost of distribution (Apple are leading the way here with the App Store - FCP-X at $299 download will generate far greater profit than the boxed version at $999). Meanwhile Avid are laying people off.
I can't believe you're comparing Blackmagic and Apple - both of which are primarily hardware companies that happen to develop some software - to Avid, which today is primarily a software company that also does some hardware, primarily through Digidesign and Euphonix, but not under the editing software division. Apple, in particular, has never, ever been "free/cheap." In fact, it has generally been just the opposite - on its hardware, which is its primary business. Blackmagic has been a mixed bag, competing with the generally more well regarded Aja on miniconverters and video boards, but going its own way with things like the router, scopes, and now DDR's. Resolve is their first software product and they decided to go a certain way with it. The success of their approach is yet to be determined, and I don't think you know the volume of seats sold any more than I do. The notion of electronic software distribution and remote licensing is not new, nor was it originated by Blackmagic. A number of companies have been doing this for quite some time, including Avid. And yes, it is efficient.
I know how keen you are to protect your patch of turf Mike but this isn't a race to the bottom. Resolve on Mac is a very stable, very powerful application. Nothing bottom about it. Grant just sees a little further into the future than most of his competitors. And just because some of the people on here may not have the money to spend hundreds of thousands of dollars on kit doesn't mean they're any less talented or capable. Doesn't mean they're not either. It's just not related at all.
I'm not protecting anything. I don't own a facility (although I do happen to own a personal copy of Resolve) and I don't plan on investing in one. What I do for a living is protected by whatever reputation I have and whatever talent and experience people perceive me as having, the cost of the equipment I run (which I don't own) is only peripherally related to that. Having run both the Mac and Linux versions of the current builds of Resolve, I would say that the Linux version is quite a bit snappier, and that is important to professional colorists working with clients on tight turnarounds. "Protecting my turf" for me is just doing my job, and quite frankly, I couldn't care less whether that means working on a Baselight, Lustre, Resolve, or anything else, nor do I care whether it's running on Linux, OS X, Windows, or any other OS. People here seem to think I have a personal stake in some of the opinions I state, but that is not the motivation for the way I tend to think. I just state what I think is truth. It doesn't mean I have any kind of investment to protect or that I don't see what everyone else sees. As for what Grant sees as the future, time will tell if making pennies on software is something that can be sustainable in a niche market like color grading, or whether going that route can make grading less of a niche market. I'm not making any predictions on that.