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If this is it happening bit by bit, then why is most of the news about them doubling down on their principles? Why did they make clear what they were doing and why, and talk about their work to make it modular, instead of trying to hide it or sweep it under the rug?
This sort of doomerism and slippery slope purity test nonsense is exactly why niche companies that do what people value eventually go under, leaving us with just the awful ones. This isn’t a betrayal of their values. This isn’t the beginning of the end. It’s just a choice they made, and all of the other choices they made confirm that they’re still doing stuff the way they were.
Edit: I’m not saying you have to buy it, or that you shouldn’t make clear to the company you don’t think this comports with what you want them to value. But writing them off forever based on this one product seems so self-defeating.
One good thing about a phone over a camera is automatic backup. If you have a burner smartphone uploading all of your images to Dropbox (or whatever) as you take them, and then you think your phone is about to get taken, you can wipe it or even destroy it without losing the photos. Not so a camera.
Also, a cheap burner phone is way cheaper than pretty much any standalone camera on the market. It’s hard to find a point and shoot digital camera (or any type of film camera) these days that isn’t super pricey, because they’ve become hobbyist items.