I thought it sounded intriguing until I realized your entire codebase has to be public. Are there actually any popular SaaS products that are 100% open-source? Releasing open-source components and libraries spun off from your app is one thing, but open-sourcing the whole codebase that constitutes the core of your business? Is that done?
Like sean said, "it won't be for everyone", but there's already a ton of OpenSource apps in Ruby alone (mentioning it coz thats what we support right now) that are old but still work fabulously and are useful.
If you have apps like these, that you think others would find useful, mail me (akash@gobushido.com) and I'll help you with porting it to Bushido. And if you are using Devise for auth, we have a plugin and it's 5 lines of code promise! Most apps that we've ported, we've ensured that they work fine outside of Bushido too (opensource is giving back. right? :)
There are a ton of benefits to the model - it won't be for everyone, but it'll be for a lot more people once we get going at full speed. Open source is, in general, just more practical.
And yeah, there are a handful of SaaS products that are open-sourced, but most aren't maintained to a high-enough quality for our tastes. We'll work with developers to up the standard.