So if you run a SAAS company you have the ability to create a giant monopoly make billions and buy up all the talent, and if you run a device/native-code-based company you should be relegated to fighting on the margins making returns in the window between your code-release and your competitors' reverse-engineering?
I'm not even sure what to say other than.. don't you think that's .. silly?
I think you can see the effect of this on VCs, where most funded startups are SAAS-ish, and you'll never get funding to make a product that's native.
This distorts the whole industry
A simple example is face identification. Facebook has some secrete sauce for doing an amazing job. You upload a photo and it almost always knows which one of your friends it is. I'd love to have a native app that does that for all the photos on my phone. Am I ever going to see it? No, b/c anyone who is half way decent at that stuff will go work for a SAAS company and make a lot of money by keeping his/her innovations as "secret sauce"