Let me try and make my point more clear ...
NETWORK EXTERNALITIES (
http://en.wikipedia.org/wiki/Network_effect ... foir the non economics majors and MBAs out there)
We had a market that was 3.5 and a new market of 4E. Now we have a market of 3.5 (some folks may not want to go to the Paizo route and also not buy 4E), we now have the 3.75 of Paizo, and 4E.
D&D is not a stand alone game. It never has nor ever will be ... you need OTHER people to play with. If you invest time an resources into a game that has 3 players scattered around the world then you have a failure of an RPG even if it is the most perfect ruleset ever.
The bulk of the market for D&D is going to 4E. The remainder of that market just got more fragmented today with Paizos move. If you wander over to the boards for "gamers wanted" today you can already see the issues folks have locating new gamers. Now the given market for D&D-esque gamers will be fragmented into several pieces.
It was a bonehead move.
Seeking to specialize in a dwinding market for a network externality based product is business failure. Anyone bored with the intrawebs and a business background can cite you dozens of companies tat blindly went down that path. Not sayign they will dissapear overnight but they will firmly cement there role and garage level web publishing.
If you want to stall to get time to grasp 4E rules and such but still sell product then you release a "Pathfinder ~ the History of the world SOurcebook" as your first product and completely ignore rules in favor of setting. 3 months later after the launch of 4E you have an idea how to build your crunch products.