There is no perfect solution, the best we can do is optimize. I think reporting and patching vulnerabilities has better properties than hoarding them and praying only people you like discover them.
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And you sure like thinking bug bounties are a good source of income :P I know people that successfully do both sides of my dichotomy. I don't know anyone who makes the same money off of vendor bug bounties.
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I do think that, because I do know people who do it and make a comfortable living. You talk like your only options are living in the gutter or selling exploits to the military, there is a third option, I promise!
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