I've been a Reason user since v1.0. I have many VSTs and probably around 80% of the total REs released on the market.
I am also a registered developer with RS (I have not release anything because i've never found the time to code....and admittedly, i'm lazy. so there is that).
IMHO, VST support probably did initially hurt the RE market some. Suddenly, developers have to compete in a much larger pool with more with more resources. Despite some developers claims, I don't think RS ever had the intention of "hurting" independent developers. This is a natural progression. You play with the big dogs, or get out.
The 'Reason as a VST' concept should make things more interesting. It may attract more developers to the platform. There are still several advantages.
This is only an example of some problems I have with VSTs:
1. Installing each and every one. This is a pain, especially if you want them stored somewhere other than where the developer suggests.
2. Authorizing each one. Most of them have to be done individually. Except Fabfilter plugs
. Some require specialized authorization, (e.g. MPC, Arturia, Soundtoys -- see iLok). I like many others, have to keep a massive folder full of text files and licenses when I want to update or install on a new machine.
3. Checking for updated versions. Most of the time we stick with old versions -- sometimes its even difficult to find out if a new version is available.
4. Updating -- this sometimes brings you back to step 1. It is also impossible to do a mass update like you can with REs.
For developers,
- VSTs have a much larger market. There is no denying that. They can be used by many different hosts.
- REs have a proven copy protection system built in. Many developers become jaded after seeing their plugins pirated. Just look @ the mess on the Avenger group right now in regard to 1.5
- Reason lends itself to unique devices. (CV), etc. This isn't as true as it once was with the advent of modular VST plugins.
I've typed so much, that I forgot where I was going with this.
I think REs have been successful depending on whom you ask.
The future of them is entirely up to RS. If they can provide innovative features to the current SDKs then perhaps they can succeed.
If however, Steinberg (Yamaha) decides on a 'walled-garden' approach to plugins in VST4 (protection, updates, etc), then perhaps it could be the end.