I agree wholly with your first paragraph, but disagree entirely with your last one. Look at every industry with economies of scale today. Do any of them make it

I agree wholly with your first paragraph, but disagree entirely with your last one. Look at every industry with economies of scale today. Do any of them make it easy for newcomers to compete? At best economies of scale are entirely uncorrelated with number of players. I suspect it's worse than that: economies of scale allow large players to crowd out small ones. That will happen in software as well once we figure out how to systematize our learning (http://www.ribbonfarm.com/2012/10/15/economies-of-scale-economies-of-scope http://www.ribbonfarm.com/2012/10/15/economies-of-scale-econ...)