As for Pathfinder, that was the SRD working as intended by Dancey, even if WotC didn't like it. The SRD was created to protect D&D itself from too radical (or too little) of a change that was rejected by the consumer. Basically, if WotC had kept the customer base happy, Pathfinder would have never been a factor. Besides, Pathfinder only exceeded WotC when WotC put a halt on releasing new product, otherwise it was simple an alternative/competitor and could only survive on the perceived quality given to it by consumers.