Re: Wilted roses
It's not that simple. Using open source because it's free to use is one of many reasons for using it. But occasionally being able to tinker with the source (say one in a hundred libraries) is also a reason for many. In fact, open source projects often demonstrate greater responsiveness than commercial offerings.
Releasing software as open source is a separate topic. For many, it's actually cheaper than setting up the infrastructure for licensing, but the main reason has always been peer review and the ability to walk away at any time. This has increasingly come to dominate software development which is why we're seeing more support contracts for open source: companies that are not prepared to contribute in some way to key software products are asking for trouble. The current situation is far from ideal, with many of the benefits of the model now accruing to the cloud providers, but is better than it was 10 years ago.
You're right to say that people generally can't afford to live off open source, but, in many cases, the people working on an open source project are domain experts and, as such, likely to find their knowledge and skills in demand.