As to 500$ a month, many people live fairly comfortably on that in very low cost of living areas. Also, setting that money aside can add up quickly.
The effort of upgrading hardware take quite a bit of development time. Even if hardware was free I don’t think a 2 year upgrade cycle is worth it based on how slowly hardware is improving.
As to buying 1k vs 2k computers without a gaming graphics card or the need for massive storage you hit real diminishing returns at around 1k. 500gb SSD (90$) case (30$) PSU (40$) CPU (200$) MB (100$) RAM (200$) -= 660 for the guts, buy two 22 inch 1080P monitors for 100$ and you got 140$ for an OS keyboard and mouse. Sure you could spend 4x that but it’s not going to make that much difference.
So no, we don't need to replace electronics every two years, we just want to :P
If you designed it as a $500 dollar business, there is no good way forward, and you are stuck.
Disagree. If my living expenses are taken care of (500$ post tax is enough for me), then I can always look at improving this, or making bigger products
1. I do understand that cost of living varies. Still, I will insist that $500/month is too low. Even a single $2000 computer amortized over 24 months is going to eat nearly 1/5 of your revenue. Remember, your housing probably isn't free, you do have to plan for retirement, you do have to go to the dentist from time to time. Many people make unrealistic assumptions here.
2. If you start with $500 as your goal, you will end up reaching $500. You will have something that you have to support and maintain. If you designed it as a $500 dollar business, there is no good way forward, and you are stuck.