Sorry for the last email.
Ron, that was very interesting. Thanks for asking the question. Too bad Martine's full paper isn't available in English.
I wonder how the "crowding out" effect differs between working on one's pet project, and doing something that is not really fun, but is necessary. For example, I'm not intrinsically motivated to write tools to support harvesting, so there would probably be no negative effect from receiving an extrinsic reward.
I think the idea of funding a production using Blender is a great idea. I'm not sure what the analogue is for Squeak, though. I can think of some things (eg: building tools for collaborative development in Croquet), but everyone will have their own idea, and there seems nothing so clear-cut as using Blender to make a movie.
Josh