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Or maybe it would port over very nicely to other publishers but they won't try because they're too hung up on the wrong things.
Your argument seems to be that since the other publishers don't follow Baen's lead, it MUST not work for them. Assumes facts very much not in evidence.
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One of the facts that MR folks is assuming is that Baen is highly profitable. Of course, neither we -nor the publishers-KNOW that. It may be that Baen is making just enough money to keep the wolf from the door.
Frankly, without knowing what Baen's finances are, we really don't know that Baen's models work all that well.
I think publishers would be a lot more willing to follow Baen's lead if they know whether Baen's models actually made money.