Thanks Steve. I guess I should search a little more before posting. Not to start another thread but most of the comments are what I expected. Hobbyists are the most upset and developers who have clients that can pay understand.
The one area that I think Telerik will hurt a bit is the free input they get from the community. We have all seen this model at work before. Offer a free edition, get free input and feedback, build a user base, and then switch to a licensing model. It is happening right now with MYSQL.
I think if Telerik continues to support the 3.7 community the way they have demonstrated in the past, then I think this will mostly be a non-event. The 4.0 platform looks to be much more involved. Building chotchkees.com on 4.0 would seem to be a bit overkill.