I just still don't get their marketing angle:
"Not willing to make a radical change in your D&D game by moving to 4E? Then switch to Pathfinder, and make a radical-but-perhaps-somewhat less so change to your D&D game!"
This is a really good point to reply to... I sincerely appreciate saying that you don't get it. Because it allows me to make a point that I think gets lost in all of this.
(However, just to be clear- what you have in quotation marks above is your interpretation, not Paizo's.)
What you're not understanding is why the PF RPG exists. Why it is being developed.
It exists to enable them to write and publish their Adventure Paths.
That is an important distinction to make.
Because when 3.0 and 3.5 were published, having a rule set in order to publish supplementary source material wasn't the goal. WOTC wanted to sell core books.
Paizo's strongest revenue stream (to my admittedly limited knowledge) is their Adventure Paths. It is also what garners them the most critical acclaim, and I don't think it would be unfair to say that is what they're best at.
The PF game exists to serve the APs.
The AP's do not exist to serve the PF game.
You need to understand that relationship, because it's backward to WOTC's original publishing strategy.
Having said that-
1.) Do they want the game to be great? Yes.
2.) Would they like to license it to other publishers? Probably yes.
3.) Would they like to make money from it? Sure.
Selling the APs and making some profit off the core rules doesn't have to be 100% mutually exclusive goals.
However, if Paizo really wanted to make a whole lot of money on the Core Game, they would invent a whole new game and not base it on 3.5. Because that would call for a lot more books to be published. However, they're aiming this for an audience that is happy to buy AP books and who do not want to buy thousands of dollars worth of new core books.
Hope this makes sense.
These are my words and if I'm incorrect then the error is mine. However I base what I've said upon things said by James Jacobs.