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If you take a scotch whiskey and distill out the alcohol, what is left has an amazing taste to it and can be used as a flavoring for a dessert.
The ever-growing size of software applications is what makes Moore's Law possible: 'If we hadn't brought your computer to its knees, why would you go out and buy a new one?'
The whole hardware industry has experienced the phenomenon in which every time computers get cheaper, they appeal to a new set of users; every time they get more powerful, old customers upgrade.
We pay for content that we like, and we like the content we pay for. It's a lot more satisfying to pay $7.50 for Steven Spielberg's next epic than it is to watch my home movies for free. Even for me.