Apologies for triggering confusion. I just think of development and product as two pairs of shoes: While development is a continuum, steppings (and revisions likewise) for products are freezed development points on this continuum. What i actually believe to understand better is Daryls charts failed to pick folks up where they are - i.e. assuming every development point is a product as well. Looking at it from this stance the confusion is understandable - just from understanding the errors on both sides of this communication.
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