Okay, I'm going to admit that although I read the blog, I haven't read through the entire thread. Apologies if I'm repeating anything that has been said. Coming from a printing background, I think I can shed a little light that the original post overlooked.
First, the expense or re-releasing print versions of old books, modules, etc. Everyone has become so entrenched in the digital age that they assume these exist in a computer somewhere. They don't. I sincerely doubt they even have access to 2nd edition because of the change in ownership. So the cost is much, much higher than you might think if you want to release a good product. You can scan it and release a lousy product, but nobody wants to pay for pirated-quality book. Even using the latest tools, the cost to remake these products is enormous. Especially because of the instant feedback online. If there are many errors added to what were already poorly-written books, the bad feelings that generates leads to lower sales. The real question in recreating these is "how long until this item turns a profit?" For the cost of recreating, say, Shrine of the Kuo-Toa, how many will have to be sold before the profits outweigh the cost. Now, how long will it take to sell that many copies? If they remake the base books but not the supporting books and modules, they have severely limited the draw of moving back to those editions. If they do remake all the products ever released before 3rd edition, how many YEARS until they are out of the red? This doesn't even get into the legal morass of ownership rights. Who, exactly, owns the rights to Shrine of the Kuo-Toa? We might think it's WotC, but we can't guess when the writer whose name is on the cover of the module can bring us to court.
The second thing not considered by the original poster is the supposed size of the market that will not change edition. There are holdouts. There will always be holdouts. What is the percentage, though? The original poster seems to feel that the holdouts number at something like 50%, but the original poster doesn't have that data. She is writing on a perception not supported by fact. The holdout number is probably less than 10% if the new edition is perceived as superior.
BTW, I've been playing through all editions since 1980. I have never been a holdout. I have run out and bought the latest edition as soon as possible, every time. I found that 4E was not to my taste and became one of the PF conversions, but that, too, shows my eagerness to switch to a superior edition. Being a long-term player does not equal holdout.
So I must strongly disagree that WotC would be better off as a print-on-demand company, ESPECIALLY in light of them being a division of a larger company. I am having severe doubts about 5E as an edition that I will want, but I don't have doubts that seeking a new, superior edition is the right path.
