This touches on an interesting point beyond the one about the low marginal cost of software distribution: Software is a field in which both capitalist philosop

This touches on an interesting point beyond the one about the low marginal cost of software distribution: Software is a field in which both capitalist philosophy (e.g. startups) and communist philosophy (e.g. open source) have both been very successful. I don't think that there are many subject areas for which that is true. Perhaps scientific research, but I struggle to think of others. In any case, and to answer your question more directly, I believe that there's room for both philosophies in software. Things that were once cutting edge become foundational and free, or nearly so. And people are motivated to create novel things of commercial value that build "on the shoulders of giants".