Thanks for the thoughtful replies, guys.
Daniel, I'm not saying IP cameras always cost more while delivering less! I'm saying that the system designer should be sure about the value he's getting when he chooses IP cameras. Sometimes the overall costs might not even be higher than alternatives, but decisions made without due consideration can certainly be costly.
John, I don't think your 2009 response to Mike Newton was, "Mike, your revenues would grow faster than Axis' if you embraced IP cameras." I could be wrong, but I recall that your response was along the lines of, "You are not reasonable to question the cost/value ratio of IP cameras." This current thread here is a great example of an enlightened discussion wherein people are questioning that very cost/value ratio. No one is saying it's black & white. It's certainly worth questioning.
By the way, DM changed tack in early 2010 to emphasize proprietary IP camera-based solutions (NetVu). Did embracing all-IP-cameras hurt DM, ceding their position as CCTV market leader? Whether all-IP-camera companies' margins and profitability are generally good and/or expected to improve rapidly is an interesting question; I suppose that would be the subject of a different discussion. Hats off to Axis, in any case, for having cleverly convinced nearly all of the industry's incumbents to spend large on supporting Axis' own brand identity.