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So, why not put the source code in git and let the OS download, compile, and install the updates from source [automagically]? Or maybe even have the entire operating system be an interpreter (a la BASIC, erlang, smalltalk or LISP machines).
It has nothing to do with whether the direct licensee is interested or disinterested in their freedom. The argument for GPL being 'more free' is that it forces the direct licensee to be at least as free as it has been to him.
I believe you misunderstood the phrase 'Paul people'. The delegates your parent referred to are Paul supporters who stayed around long enough to get elected as delegates.
That's only true if the machine running the simulation is not powerful enough. Given a local high-order maximum which exceeds the average 'reality' surrounding it would be enough computing power.
The fees are quite low (on the order of a fraction of a percent [as opposed to 3-4% for VISA/MC or higher for Western Union). You can choose to submit transactions with no fees but depending on the load on the network and the amount of miners, difficulty of mining, etc, it can take quite a long time for them to clear. For instance, my zero-fee transaction from 2 weeks ago took a week to complete.
The limitation is not a shortage of problems to solve. It is a design feature.
In fact, problems will continue to be solved (i.e., transactions verified by mining) long after the last coin is 'mined' but then the solvers will be rewarded by fees and not mined coins.