Definitely a good lesson and that's why one needs to view the product with a wider perspective which should dictate the right strategy to take.
It's a complicated issue without a clean or simple answer. Arguably this is why different people have different thoughts on the software patent issue. Most people have a very black and white view of it but there's a lot of nuance that makes the issue shades of gray.
I also suspect the reaction would be entirely different (I think someone mentioned it in this thread) if Nate didn't open source it. I wonder why that's the case.