MOS looks okay, but checking out morphos.net makes me think its not worth bothering.
Well, the claim that "Any new version of MorphOS for the Pegasos won't happen before the above counters reach zero" is not true. Mr Gerber can't stop new MorphOS releases, and there has in fact been already two releases since that claim. Obviously unpaid people should be paid, but this is not stopping MorphOS development.
Plus I remember an interview with Carl Sassenrath about him not getting paid
Sassenrath non-payment isn't related to Pegasos or MorphOS, but Viscorp.
plus someone from either FreeBSD or OpenBSD not getting paid.
It was Dale Rahn and OpenBSD.
Should I be giving money to a company like this?
I haven't heard of any end user being mishandled by them, and at least they have a working guarantee system (broken systems are getting replaced/fixed).
Agreed, the company isn't all roses, but the product is solid.