AbdulAlhazred
Legend
Interesting point, but I would think it would be more worrisome for D&D's current owner that a d20 D&D-based game is the one nipping at their heels. (If that's really happening, off course, because I have no proof of that.) And I'm not sure what you mean by "leveraged the D&D name", because Pathfinder doesn't seem to do that. What it does do is leverage past D&D editions, as did 3rd edition, 3.5, 4e, Essentials, etc etc.
Also, excellent marketing can get folks to the table, but only a solid and fun game will keep players at the table. My unsupportable anecdotal experience leads me to believe that Pathfinder will be fine down the road. But anything can happen.
In the meantime, I'll keep playing both PF and 4e.
My hypothesis is that WotC looks at things strategically. They see that they needed a new style of game in order to avoid just riding the existing market into oblivion as the customers get older and older and there are fewer and fewer of them.
Why would they worry about PF? There are 2 possibilities. They are correct and PF will simply fade away to oblivion just like 3.5 or some WotC warmed-over 3.5 would have. They are wrong and the whole product in any form whatsoever is doomed no matter what they do.
If they're right, then Paizo is the one that is in a no-win situation in the longterm. At best what would they do, warm over PF yet again? Come out with their radically new system to compete with a now entrenched 4e and try to compete with all the experience and resources that WotC will have acquired in the new market conditions in the meantime? Maybe Paizo could try to steal a march on them in 5 years, but they lack the D&D brand name. Paizo can make a nice little business off of PF, but beyond that they have dim prospects.
If the market really is terminal it doesn't matter anyway. I suppose in that case they'd have been better off to make a 3.5 warm-over and suck the tail end of it dry and not leave some of it to a competitor, but any business with that mentality is doomed anyhow.
They had to try and they are still trying, and they will keep trying until they succeed or the doors shut. Personally I admire that a bit in the WotC people, they have vision and courage. Maybe it is bad vision, but only time will tell, and maybe it is hopeless courage, but that's better than cowardice.