Well, there's no reason you can't have the same kind of event in other cities. In fact this model of batching a bunch of startups/projects together would be perfect for areas with a lower density of startups...
I think about TextMate success story where the author decided to go with the platform dependent library to make it shiny and not waste time fixing behavior bugs due to the multiplatformness
My concern is that it does not really foster a community around it so with the odd licensing model and without the community itself it can slow behind other alternatives.
I can't argue with that but I suppose the way that they are looking at this is that, as it's least partially a commercial venture, there are people being paid to keep it concurrent. Only time will tell whether this is how it actual works out however.
Don't think it's gonna change anytime soon. Contrary of other professions we don't really have a blueprint to create good software and estimate it. We can't even decide which is the better paradigm or software methodology to create something...