Merric, I love it when you kick ass

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Aside from that, further analysis of the current situation with D&D leads me to believe that Wizards now think that D&D is unsustainable as a purely printed game. It needs the Virtual Table (and mostly online support) to survive.
I don't take issue with that view; I can well see where it comes from.
I just wish they were more competent at supporting the new direction.
Tell that to the people at Paizo - they seem to be doing just fine with sticking to print. I have to say that if WotC is going in a print-light, digital-heavy direction I will feel rather disappointed, even to the point of "Why bother? There are plenty of great RPGs out there and I've always wanted to make my own fantasy heartbreaker."
Actually, I am almost certain that is the case but I'm a bit old-fashioned. I like my books. In fact, I like a ton of books to choose from. I liked the amount of hardbacks that came out for 3.x - I didn't buy them all but I liked having options.
But I hear you about DDI - I haven't been a subscriber for quite some time and I don't plan on re-subscribing in the near future. What I
would subscribe to is a premium version of DDI that included a print version of Dragon.
In some ways I think they shot themselves in
the foot in terms of printed books....SNIP
Your post gets at why I think WotC suffers from a dearth of creative energy and (seemingly) designers. They realize that they can't just do the same old edition cycle endlessly and need to try something new. But rather than being daring and coming up with - gasp! - New Ideas, they look to find new ways to package old ideas (DDI, Essentials).
It may be that the current group of designers
are creative and wanting to try new things but are constantly being snubbed by the powers-that-be at Hasbro/WotC whenever they try to get too
"Incarnumescent" (how's that for a new word?).
DDI could be a great boon to the creative juices at WotC because it allows them to focus their print products on fluff - theme books, campaign settings, adventures. All the crunch can be had in one place, one "book" - DDI.
But we're not seeing it. Who knows, maybe
Shadowfell will be revolutionary. Maybe
The Madness of Gardmore Abbey will usher in a new era of inspiring D&D adventures. I can hope but am not hopeful.
I also continue to maintain that it is a huge mistake to not only not have a print version of Dragon as a loss leader and community focus, but also not have a living, growing main (and new) fantasy setting that brings the published material alive in a perceivable form. I don't know for sure but I imagine Paizo doesn't make a huge amount of dough on the Golarion supplements - they probably sell decently well but their main impact (in my wildly speculative opinion) is the secondary effect it has on the line as a whole. Even if you don't play in Golarion it is nice to see how Paizo embodies their game in a world.
From a cynical point of view, perhaps this is intentional (especially with the change to the web only DDI character builder).
A possible underlying motivation is when a 5E comes along, they can remove the web only 4E DDI character builder immediately and replace it with a new web only 5E version. Anybody who still wants to play 4E, will have to resort to using either the unsupported "ancient" offline 4E DDI character builder or go back to doing character creation by "hand" from the 4E rulebooks.
If what you say is true then it exemplifies what I detest in businesses and what essentially separates "Evil Corporations" from businesses of a more wholesome variety ("Mom & Pop stores"). The former are only interested in making money, no matter how they do it - and they're happy to take your money now even if it lessens the chance of a sustained relationship; the latter actually love their product. I'm not convinced that we don't have that kind of split with WotC and Paizo. I'd love to be wrong, though. However, the proof is in the pudding, as they say.