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From a Developer's standpoint, letting players create their own content means that you will get less money from selling official content, since players can replicate it given enough time.
From a player's standpoint, it's bad news because, although devs may have more incentive to make more content for the game, it allows them to become complacent. Just think about the MMO model: release a game way before it's polished and anywhere near finished, fix bugs and add "new" features that should have been in the game at release and use the monthly subscription to justify it, and then make an expansion pack with features that were promised in release and charge full price on top of subscription!
Instead, they'll just charge you small amounts of money for features that definately should have already been in the game, but they were too lazy/greedy to put it into the original release.
What ever happened to the good old days of Total Annihilation's Weekly Unit?
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