Oh, I absolutely agree - but - to think this may have been the intention from the beginning may just be giving them too much credit. They might just not have realized what the incredibly time-consuming task of support would have entailed, and had a majority of team members gripe about doing all that for free (when the mindset usually is "Hey, it's finally released, we can relax now!"...NO SIR, you can't!) , and voila...likely as the result of much internal discussion you have a decision like this being made after-the-fact.
As one who's been there and done that I do NOT envy them and part of me wants to wish them all the best in an effort like that. Being a limited market indeed I suspect in reality that the support efforts will outstrip the income, being as the product installs on a rather finicky platform to begin with and...well, we've all dealt with "the public" I'm sure....I can think of several memorable customers in the past that I wish HAD been "freeware" customers just so they could be told "Don't like it? DON'T DOWNLOAD IT". Instead, you get shackled to many hours of supporting unique problems (oftentimes not related to the product itself) with some impatient people who've paid money for the thing to work for them, and your share of the pay after being split among everyone is a curse rather than a blessing. 'Specially when tax time comes......
The first release as freeware is indeed one heck of a way to get a large base of BETA testers, thats for sure.... hmmmm...

But it also kills your potential market since lotsa folks are happy 'nuff with the first release.

Yeah, I suspect it just fell out this way... but even so, wether it's actually good for all involved will remain to be seen. Lotta hurdles to jump and I'm quite sure you are right about the situation correcting itself, to the chagrin of people on both sides probably. So I wish 'em, and the CFS3 community as a whole, the best in that respect.