A1: 2.0 with new whiz bang feateres.
A2: Selling thousand's of servers for $5000 each outta do it.
A3: Who gives a rat's ass, paying for their promises is their problem.

  My perception is that Netscape purposely released a product that was a
total BITCH on servers (multiple connections, one for the html document,
and another for each and every inline gif. Current servers fork off a
separate process for each conncetion) with the intent of making a whiz-
bang server that doesn't fork off a separate process.  Netscape servers
would then be NEEDED because other servers would be comparably bogged
down by greedy, resource-grabbing Netscape clients.  Netscape has a
great server, it's fast as hell becasue it doesnt fork off a process
for each connection, which entails huge overhead.  It's really a great
scam, except that Netscape is millions in the hole and desperate for
cash right about now.  So they backed out on free copies for personal
use.

  I think Netscape has a few not-perfectly-clean schemes going on,
but I don't think they were ever thinking "Let's tell they can have it
for free to get free beta-testing."  Maybe I'm wrong.