Although I agree with your overall point, there is a middle ground here: (commercially) non-free but open source software.

I believe that's where the biggest disagreement ITT lies. There are currently good ways to do FOSS, proprietary closed-source and free closed-source software development. But if the OSS is worth charging for (commercial) use, devs are left with asking for donations, SaaS or "pay me to work on this issue/feature".

There arguably should be better mechanisms to reward OSS development, even if the largest part of an OSSndev's motivation is intrinsic.