I disagree with a lot of what you have written there.
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Everything goes smoothly until one day the developer finds that somebody else has released a fork out of a disagreement arising either out of technical or non-technical grounds. Suddenly the world's not perfect any more.
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I think you may have mis-understood the motivation of many FOSS developers. I'd say that most FOSS developers do it for the love of coding. Recognition and popularity take a back seat. Well, they would in my mind if I were an FOSS programmer.
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Then the developer suddenly wakes up to reality and finds out that he can no longer reclaim his work as his own. Suddenly the developer realizes that somebody else has snatched away all those long hours of work put into developing that application.
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Wouldn't that depend upon the license he chooses to apply?
As far as I'm aware, the GPL does have protections for the original author.
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He is no longer in control of who uses, modifies and releases the code
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Firstly, no-one can EVER be in control of who uses their software. As for the rest of your sentence, this has been the case for the 20-plus years that the GPL has existed.
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and leads to huge splits and debates within the development community.
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I think it depends upon which part of community you're in. Some parts of the Linux community are far more interested in politics than anything else. Other parts of the community just want to get the job done using the best quality tools available.
Anyhow, there are many examples where the very "failures" you've attempted to explore have resulted in better quality software. For example: XFree86 vs. Xorg. We now have a "modular" X, thanks to the Xorg project. If they hadn't forked from XFree86, we'd still be stuck using a monolithic behemoth.
Another fine example is the whole cdrecord debacle. The original developer of cdrecord has become obstinate and seemingly refuses to accept the fact that the Linux kernel can allow CD burning without the need for a SCSI emulation layer. Personally speaking, CD recording seems to work much better for me without a SCSI emulation layer, but I still have to put up with nasty messages from a recalcitrant software developer every time I wish to burn a CD from the command line. Don't get me wrong, I am very grateful for the utility that Mr. Schilling's software has provided me over the years, but we can't stand still. If he isn't willing to move with the times, someone needs to take over. Once the dust settles, we will have a better quality CD writing package for Linux.
As someone who has been using Linux since 1999, I can honestly say that I have seen this sort of thing over and over again. It has resulted in better quality software every single time.