Consider VHS versus Beta. Beta was the superior technology but VHS won early dominance. Microsoft is a classic example. Mitch Kapor said it wasn't about selling, it was about getting it used. If I'm early in the market, I may invest in early market growth rates, then reassess.
Software companies have classically high value added products.
So your assessments are more about market size than competitive factors. Quicken is a great example of increasing returns. Intuit has a tremendous franchise opportunity as they expand from home checkbooks to electronic banking. Quicken is the platform that's already there. They have a huge opportunity in front of them.