Outsider contributions are submitted publicly, while features developed by the company start in secret and can remain secret as long as possible. The company's contributions are rammed through while outsiders contend with endless bikeshedding with no guarantee they will get anything they need.

In the end there is no sensible reason for any other entity to partner with the controlling company. The partner finds they are prevented from innovating while being bogged down by the "process." The controlling party then seeks to cannibalize the partner's product during this time by shelving any of their unique features and ideas. Once the partner moves on, the requisite changes and fixes to the specification are magically pushed through.

I wouldn't call this a core business model as much as an enhancement to one. Fundamentally it's an attention grift -- a bamboozle of complex rules, procedures and processes, cloaked in goodwill, and furnished by a large interest and future hope at any given time.