If it is a typical complex, highly-customized business system, it will have:
So, I'd say your Phase 1 above is a vast under-estimation. And the idea that you can farm it out to an external organization, especially one without close personal contact with users, is pure fantasy.
At the end of your process you'll have a system that does maybe 20% of what the users actually need, and 50% of which is stuff no one needs any longer.
Interesting analysis. One problem with it is that much of the "payment" demanded for digital goods is not actually directly linked to the labor used to produce it. A lot of the resistance to paying for music would go away, if the people paying were confident that a) the money was going to the people who created the music, and b) it was a "fair" payment for that music. Most people don't mind if Paul McCartney makes a billion dollars, but much of the music industry is designed to siphon money away from the artists and distribute it to parasites.
In the past, people couldn't do anything about that, it was buy an LP/CD or nothing. Now consumers have choices, and they'd rather go to a lot of trouble to download for free, than pay $.99 for a song where $.01 goes to the actual artists.
This brings up a serious thought. Combine the following:
What's to keep Russia from unilaterally taking over the Station? What, exactly, would we be able to do about it?
You must realize that the computer has it in for you. The irrefutable proof of this is that the computer always does what you tell it to do.