By going open source everyone has their hard work for free.

Not necessary, I managed to keep SteemPlus (opensource) alive and even had another developer working with me on the project. It's possible to monetize opensource if it brings value to the community.

that requiring a coder to turn over their code and thus hard work to every one would be a dis-incentive to develop for steem block chain.

I don't see anyone suddenly taking SteemWorld code to create Steemworld2.org, there s no incentive and the userbase would keep using the original one. Look at Busy example, it s been opensource since the start (or at least since Im on the platform), and Utopian originated from a Busy clone, did it hinder Busy? I don't think so, on the contrary, it was out there for the betterment of Steem as a whole.

That protects steemit, it does absolutely nothing for nor give any recourse to having funding pulled from a developer once he has turned his hard work over to the open source community, after all why keep giving someone funds for something that you can now work on or destroy yourself.

This has nothing to do with Steemit. SPS is funded by inflation (hence stakeholders). Why would anyone want to code themselves an awesome tool or pay a dev to do it, rather than letting the original developer continuing his work? That doesn't make sense.
The funding is not guaranteed to last though, that s a valid point. In the end, it s up to the developer to make his project opensource or not. Mine have always been, even before there was an incentive for it, and it never played against me.

Sorry at times I am rather cynical of initial good intentions, which I am sure the SPS was, but is it still? For myself a normal everyday user of the social side of steem block chain not involved in coding or program development, it appears to be a completely one-sided system, all the protection is for steemit.inc and zero protection for the independents code/developers hard work.

This post is here to welcome dialog, and as long as its polite, I don t mind it at all. That s actually why I wrote this post, so that non coder can also get an insight from the coder's perspective. And once again, this has nothing to do with Steemit Inc.