You are correct, but there is also an interesting phenomenon going on here: old school open source projects last longer. They end up being more reliable in the long term. It's kind of weird that the unprofitable option is the stable one.
> Capitalism works fine under certain conditions: free markets, which implies competition. The problem is that these conditions do not always prevail.
Eventually, on the free market there are winners, and these winners form a monopoly. See Nestle, Tyson foods, Apple. The big corps, having cornered the market, then squeeze the hapless users (and the ecosystem, in Apple's case) into exorbitant prices, because there is no competition. You started with your beloved "free market", ended up with a monstrous monopoly. Surprise, this is how any "free market" story ends.
If you want to avoid the trash situations that we are in today, you need to regulate the shit out of companies with antitrust, breaking them down when they become too big, not allowing them to acquire others under certain conditions and forcing them to treat their workers and customers well. This is the opposite of "free markets", and is the only way if you want a stable society.
