Another dumbass comment. Software tools are not free - the most widely used s/w development environment is probably Microsoft Visual Studio which costs several hundred dollars. Even "free" tools such as Java from Sun are really subsidized by the sale of Sun hardware. EDA is a multi-billion $ industry - you can question it's growth, but there are companies doing quite well, and others not so well. Take a look at the SNPS balance sheet.
Cadence made the huge, huge mistake of "giving" software away for free to their customers or potential customers just to prevent missing their numbers for the year. This set a very bad precedence, not to mention devaluing the tools and then potentially EDA overall, which is why some might think "EDA is dead" or "there's no future in EDA". Why then, would EDA s/w vendors do this? Not all of them do; you have to look at the source; Cadence. They lost sight of what was really important like developing tools for their customers and the industry and concentrated on creatively doing whatever it took to look good on the street. This kind of business can't be sustained. It's not all Fister or the executive team's fault. It's what has become of corporate America over the last 15 years or so; they've let the MBAs and their greedy mentality for making money fast dominate, especially in Silicon Valley (how many CEOs per square mile?). Synopsys was headed in this direction about 8 years ago, then they went back to school. They've invested in "people managers" again, whereas Corporate America, conversely, has been substituting MBAs (with slicky-dicky sales mentalities) for managers with motivational, organizational and technical skills. Much of these talented folks left Cadence (either on their own or through house cleaning) and landed at Synopsys or Mentor Graphics. If Cadence wants to become "reborn", or if Corporate America wants to get back to producing great products and great services, then they need great leaders and leadership skill sets. Plain and simple.