To resort to a D&D analogy:
Intellegence, Wisdom, and Charisma are three different things. Being smart with academia, being saavy with consumer products, and having good taste in recreations are three completely different things, and having proficiency in one doesn't make you immune from being an idiot in the other two.
Look at how many people with doctorates and masters call in to tech support with the dumbest questions. No offense intended, but PhDs don't include 'Immunity to enjoying mindless cash grabs.'
lol, yeah, totally got to agree with you there. Advanced education and street smarts or social savvy don't really have much to do with each other at all.
As an example:
Look how many educated people in this and other threads actually believe the consumer base for D&D would want a complete digital package? Newsflash: Games are better touched than downloaded. D&D has miniatures and boards and physical hardware for a reason... any game which involves some form physical manipulation is more involving.
Ask many salesmen: It doesn't matter the product, you multiply the chance of selling the product if the customer can hold on to it. Books are tactile, and portable, and relatively cheap. E-readers, and computers are not relatively cheap, nor are the files tactile.
Microtransactions are convenient for music, for computer programs, for video games, sure. But these are things you can't touch, so you have to resort to other methods to increase revenue. Going to a free-to-play, microtransaction model is about reducing the barrier to entry.
However, for physical games, it is not ideal: Having the customer touch your product is far more effective in the long term.
Wizards is capable of taking tactile products into the digital realm with success. D&D (the game system itself) has proven difficult to do so, due to it's nature of not being composed of digital objects, and due to the lack of ability to play it through their digital offerings.
See, all the digital forms of the books in the world won't change the fact that you still need physical dice on a physical table with physical miniatures resting on a physical game tiles. It's a game designed around the physical presentation, losing a big part of its game mechanics if you cut those out. Physical books are the best way to integrate that into the majority of groups... the best you can get out of digital offerings is a handy way to put together characters. Without that digital game table, making the game wholy digital is only cutting off their own foot and saying it'll make them faster in a running race.
Well, let me give you a different view on that. I have a group that started with 4e right after it came out. We have never met. That is I've met SOME of the people in the group (one of them is my sister). The rest I have never met IRL and a few people have come and gone who were total strangers. Yet we play in my campaign weekly, we have fun, we buy books and DDI subscriptions, etc.
Now, I think playing at the table is great and it is a preferable way to play, at least for me. OTOH I'm an old fart in the D&D world, the younger generation that has been brought up with computers and CRPGs and MMORPGs may well feel a bit differently about that. As evidenced by MY playing using a VTT online if even old time players are at least somewhat willing to do that it seems like a viable play mechanism that WotC should do as much as they can to support. The important thing is people play their game. HOW they do that is secondary and the more ways that exist the better.
In any case lets look more closely at the WotC strategy. If you were primarily interested in moving in the direction of an online "micro-payment" or "digital goods" sort of system what would you be doing? Well, for one thing you'd reduce the cost of the physical "hardware" to play the game to the absolute minimum, and concentrate on making those products the most useful ADJUNCTS to playing the game you can. Maybe you would redesign your books to be cheaper smaller paperbacks with a tighter focus in each one. Maybe you would sell a lot of tiles and token sheets. Maybe you would really push to make sure there are FLGS with places to play in as many areas as possible. Huh, maybe you would do what WotC is doing!
Now, I don't claim they're doing all this stuff purely for the purpose of making the game more focused on the online/digital products. There are a bunch of reasons for Essentials, DDE, Encounters, etc. As with most things in this world the evolution of D&D products and business model is being driven by multiple forces. It is just interesting that (as it seems to me) the evolution of the product DOES make sense from a perspective of moving to a new model something like what the OP outlined.
Obviously this is going to be a LONG term thing though. 10 years from now I suspect you will still be able to play D&D the same as you can today and never ever touch any online anything if you don't want to. You'll just be using paper and pencil to make up characters, etc. Maybe you'll even have access to a certain amount of free basic online functionality like the OP mentions. The people that want to play 'old style' will have that option. People that want to do everything online or a mix of the two will have a bunch of other options. They'll probably be able to buy access to content packages and features that they want to use at reasonable prices. They'll probably be able to buy little add-ons or smaller chunks of the bigger packages for less reasonable prices.
I mean really, if you think about it that tempting impulse buy really is an amazing business opportunity. Sure, 50 cents for a monster is expensive when you can get a library of 250 of them for $25, but if THAT is the monster you need right now to put the sauce on your encounter and you can just click the "add it to my monthly payment" button have it RIGHT NOW, well I suspect it might not actually be too hard to make money off that.
That's too expensive. I can get 8 classes, 5 races, and a panoply of feats and other stuff for less than that in paper. A dollar for a monster block? How is that even a good deal compared to buying hundreds of monster blocks for 40 dollars?
And don't get me started on the inability to properly preview stuff in advance. That's the thing with digital offerings: I can't crack open the book at the store, see what's inside, and decide if it's worth picking up.
This is not good for any consumer.
I wouldn't be so eager to condemn the idea. Sure, you may get 350 monsters for $40, but how many of them will you actually ever use? When you look at it that way the great deal you get buying the book doesn't look quite as appealing. Beyond that what you can get online has more VALUE. It is searchable, can be used with various tools (encounter builders, campaign planners, VTTs) and it isn't limited to a specific length by virtue of being stuck in print format, nor will it become obsolete or eventually fall apart and have to be repurchased (lost, stolen, etc). Heck, all sorts of extras can be tossed in. For the nostalgic your $1 monster can have old stat blocks copied out from every version of the game where it ever appeared, and the old text too, and a slew of new text, etc.
As for the problem of review, that is mostly surmountable as well. The way you go about it is for instance by promoting certain people as especially good monster designers. "Get the new Joe Smith Kobold Sneakthief, it's the best thing ever!" With things like community ratings and just generally a really active and critical online community it should work quite well.
Really, what I would expect to see is a gradual evolution and transition. From now on all the digital content is online and part of SOME program you get with a subscription, maybe for free, or maybe as some reward program or redemption system. I'd expect to see them perhaps open up something analogous to the App Store. A place where you can go and make content and charge for it. WotC gets a cut, and you get a cut (which probably you just turn around and use to pay for your DDI stuff anyway unless you do really amazingly well with it). Heck, they could let you sell variant rules systems, settings, adventures, anything. This could be a GREAT system.
As time goes on they will probably transition to a more graduated sort of subscription service with player and DM level subscriptions, a free introductory level, etc. I sort of agree with the people that say WotC isn't the swiftest navigator of the digital world. They HAVE been successful over time, but they seem to move slowly and often misstep before recovering. M:tG online wasn't just instantly successful, it spent a lot of years getting perfected. I think 4e Online will spend a few years getting to where it is going too.