Right, it's just a thought experiment. It will never happen, but if the USG committed to only using a lawful key escrow system, it might move the 0day market as billions of dollars fall out of it. Maybe that would have some benefits, but the economics seem complicated. 
Fixing them is the important thing, because you have no way of preventing people you disapprove of from finding them as well. I'm not sure if I can say it's ok to exploit them while being fixed, is it okay for UAE to do that too?
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I do not regard exploiting-while-being-fixed as good or bad in itself. I’m an ethical consequentialist, so for me these scenarios differ because the consequences are expected differ.
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Anyway, so I’m not a fan of hoarding 0days but rather to find them, use them and report them. If we could agree on that, the question then becomes: whats should “(report) ASAP” mean for LE/intell/etc.
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