Re: It was nice
You are correct that Open Source Software tends to be all about the programmers solving their own problems: "scratching their own itch".
But I do find your examples to be backwards to my experience. Everyone wants to work on office packages, that is why they are there? Really? How many office packages are there (LibreOffice, OpenOffice, ??) and how many of those were actually started as FOSS when someone had an itch to scratch? (Hint: neither of the two I mentioned).
On the other hand, proper text editors for programmers, there are far more of those than wordprocessors. And highly functional (but not at all pretty) packages for consistently formatting text into convention posters, publishable papers, formal reports, books etc.
If you look back on the old collections of FOSS that were passed around on floppy and CDR, you'll find that most of it (once you skip past the games) was written by and/supported by scientists, researchers and the like. Lawrence Livermore Labs was a name I became very familiar with, good software came from there (no doubt still does). We knew about this because, well, you bought a CDR and that was pretty much all of the FOSS available; indexed alphabetically, you couldn't escape knowing about it. Which was a refreshing eye-opener: prior to that you only heard about programs if you happened to read a newsletter or paper that mentioned a new release, or it by word of mouth (literally - Usenet, and access to it, came later!)
Now, with so much available, perhaps you are only aware of the stuff that is publicised, reported on (El Reg included), that everyone knows about and/or what you yourself have looked for. There is still a very rich vein of FOSS outside of the mainstream, but in an odd turnaround we are back to word of mouth and occasional random references in El Reg comments to obscure packages.
Having said that, sponsorship is always going to be useful, so long as there aren't too many strings.