Interesting counter point! I happen to think though that Deals-That-Never-End on the 360 path are more Feudalistic exploitation than a supply-demand-free market kind of thing. I do see where you're coming from and I understand the wrinkle.
Well, this is where people end up having no-true-Scotsman debates about what is really meant by capitalism, which is tremendously dull but sometimes necessary :) Note that most of the free market analysis work has assumptions built into it about market power and the prior distribution of resources. IP is a little weird because it's so non-substitutable; if you don't like the price of fish you can go buy some other fish, but if you don't like the price of a Phish album you may not find a substitute.
One of the main improvements of capitalism over feudalism is that contract terms usually last for at most a lifetime, and where they don't they're at least limited to a piece of real estate.
