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I think it's implicit in that proposal that the amount of software available would massively decrease. That's not necessarily a bad thing.

I think thats a ridiculous statement. Should we also limit how many books are written and who can write them?

What is the difference?

If you buy a book and it turns out to be trash, is that negligence on the part of the author? Is your safety at risk because of it?

You could maybe argue that this is true for textbooks, but not much else.