Mitch Kapor wants to kill PIM Market?

Its great to hear that Mitch Kapor has a blog and wants to build a better PIM.  I also have no problem with it being open source.  But, I have a problem with a non-profit organization building a supposedly free software that competes with commercial software.  What about existing PIM software publishers?  Are they just roadkills on the way to Goodwill Valhalla?