The real problem in my mind is that really, it's either the user *or* the supplier that will benefit, but not both.
The transaction won't happen unless both parties benefit. It's not an either or proposition.
This model has the advantage that if you just use Word once in a while you can use it without paying the $$$ that you now have to do. Just need it to open that job application. That's just $1.15.
Supplies will benefit b/c more people will be able to afford their product and they'll sell more.
Personally, to me it is worth it to put up with the disaster known as Open Office just to avoid MS. However most people don't have that hangup and will love the new model.