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Money quote: "The assumption behind any 'lock-in' strategy is ultimately that your product is poor and that customers will gladly switch vendors if given a chance."

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That's wrong. The assumption is "even great products can get copied, and than profits go to hell.".Lock-in is one of the rare strategies that work.

No one ever leaves your first mover product to go to a copy unless they have a reason to.

Isn't lower cost reason enough ? and what about new customers(and the side effects they carry for marketing and other stuff) ?

The reason can be someone else's better advertising budget.

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