Sun is not the only outfit stuck in this fantasy world:

And to re-answer the same question: am I worried that changing the price of our software to free will diminish software revenues? No, quite the opposite: I believe it's vital to cause software revenue to grow - based on accelerating adoption.

I commented on this a few weeks ago, here and here. The important point was made in this piece, here:

Problem is, most people just take the free stuff and run. Only 3% to 5% of JBoss customers buy support contracts.

Why do you think so many companies have moved (or are moving) to subscription models? The "pay once and then pay support" model demands a huge volume of ongoing new sales, because support revenues just dry up. Making the initial price free only accelerates the problem, as you get to the "no revenues" part sooner.

Paying for the resources that build software has to be accomplished somehow. The only way that free ( or close to it) works is when there's something else that the end user has to buy - the monthly access fees that Wireless providers charge being a good example. You might notice that the handset price rises dramatically if you don't buy that plan, and there's a lesson in that.