[lopsidedBrain]

The material nature of hardware is barely any higher than that of software. Yes, you cannot just copy bits around, but you can take the same design and fabricate millions of chips for pennies. The cost of production for any given chip of Silicon has almost nothing to do with its material cost. It has everything to do with the amount of design work that went into it, just like software. None of that appreciably changes the benefits of cooperation vs competition.