Twitter’s new API policy in plain english

Twitter announced new API policies for version 1.1 of their API today.  The announcement was accompanied by a diagram which IMHO was bit hard to understand at first and caused a bit of useless debate and worry on Twitter.  Here’s my dumbed-down version of the diagram, or at least my understanding of it.  The x axis represents who your application is for:  the general public or, for lack of a better word, nerds (developers, business owners etc.)  The y axis represents what your application allows those people to do:  either count stuff (tweets, links etc etc.) or do stuff (tweet, search, etc etc)

Here’s Twitter’s (better) version of this: