I think the concept is OK, it's just the pricing that's wrong.
The old boxed software model forced companies like Adobe and Microsoft to bring out upgrades every year to 18 months. That meant coming up with enough new features to convince people to upgrade, leading to bloat. The subscription model could work, if it meant vendors could concentrate instead on patching, bug fixes, quality support and adding relevant features rather than unnecessary bells and whistles.
OK, it probably won't work like that in practice, but the potential is there.
It's the pricing that seems a bit off. I think it does need to come down, and be more flexible in terms of mixing and matching products. I did sign up when it was discounted in the UK, and it's led me to play with indesign and illustrator, but I can't see me using them much. They could break it down into categories:
- Photographers - Lightroom and Photoshop
- Designers - InDesign, Illustrator, Acrobat
- Videographers - Premiere and the other video tools.
- Developers - Dreamweaver, Flash builder
Allow users to pick any package for, say £10/month, any 2 for £20 or all of them for £25. I've deliberately picked a top price point about half the current level as well - it should be a price point that is no more than the old total cost (initial licence + upgrades) over a minimum of four years.