For the FSF, developer salaries are lower. You could pay them half the normal rate and some people might be okay with that. Most people would go for the latter option. In order to have quality work performed, we need to pay quality compensation. Becoming a non-profit does not indicate a fear of money on our part.
Money is a tool that, when properly used, yields excellent results.
We won't have a board member who gets 20 million shares, outrageous compensation and a jet. We won't have some higher-up squawking about how we need to move X million units so that he can make X million dollars on his stock options. Instead, we'll be sponsoring real projects that yield real software that helps real people. I think we'll be an experiment for the community. See how LinuxPPC does.