Well sure, I imagine there would be less apps produced (certainly less me too and shovelware apps where the author is trying to make a quick buck). My point is simply that apps will continue to be produced, regardless.
Besides, even if its perfectly legal to copy apps (or music or movies) and distribute them however you like, that doesn't necessarily mean you can't monetize them. It doesn't even mean that you have to completely give up the pay-for-app model either - people will still be willing to pay for something they really like (I bought a CD online direct off a musician a few months back despite already having the mp3's and I've never even opened the CD!), but obviously a lot fewer people than now. Perhaps a pay what you want model would work. This can be offset in other ways - paid support, physical merchandise (printed documentation perhaps) and kickstarter-style "I'll finish the app for $X" are just a few ideas.
I'm not saying that this would definitely be sustainable, because I don't know, but I do see some potential there and either way, people will still make apps, music and movies regardless (though it will be less[1]).
I wonder is B2B sustainable on support contracts and custom work?
[1] Maybe hobbies of the future will revolve more around the production of (free) content and less about the consumption of (free or otherwise) content? Evolution and adaptation of human behavior?
