What do people that have contributed to the code base get? Who is getting money for this? I don't understand how you can go from an opensource project to a for-profit project.
They get nada. I implemented one of the features that caused CM to explode in popularity very early on, and cyanogen did very well out of donations from it, but I never saw a cent of it. I gently raised the issue one day, and he made it pretty clear that he had no intention of divvying up the wealth. Granted, he has put a heckofalot more time total into hacking on CM than I have, but actually, I would have spent a lot more time hacking on it if it weren't for that experience. That was the last code I wrote for CM.
Why in gods name would a company that backdoored their entire crypto stack to the NSA worry that some crypto code is weak?
Because they now have a better back door that needs to become the default.