Very interesting discussion guys! I am in two minds about software patents, although I agree with Steph regarding US and Japanese companies staying offshore for IP R&D if they know they wont get patent protection.
The thing is software was never originally supposed to be capable of being patented. That is clear when you look at the EU legislation. The EPO, through some VERY creative interpretation brought sofware within its jurisdiction. The lack of clear EU law on the matter meant that it was always a bit of a black art in terms of advising clients and that lack of transparency was not good.