You’re right about that. But now put the users in the equation. If you’re making and marketing a B2B tool, it’s fine. But for a B2C tool, that tool will have to be so good that people will be willing to keep paying an ongoing subscription. That means that you’re now also competing against other cheaper alternatives (OSS) and people’s other life expenses (including other subscriptions).

It depends on the niche you’re targeting but I’d go as far as to say it might sometimes be better to sell 100 copies at once every now and then, than get 5-10 people who are willing to subscribe and might all cancel their subscriptions a few months later when some other subscription-based tool shows up. For most people it’s easier to justify a one-time $10 purchase than locking in a $10 monthly subscription.

But I agree that there’s no universal solution and it depends on what tool you’re making and in what niche.