> A purist approach like in scenario 1 leaves everyone poor.
That depends, not always. Sometimes the employees of said company manages to contribute back upstream, on the dime of the company. If the "free software" they used and contributed to have a lot of users, it's certainly not "leaves everyone poor" but rather "helps everyone, beyond monetary gain".
Sure, you can make the argument that it isn't that great for the company, and you may be right. But the world is bigger than companies making money, killing a few companies along the way to make small iterative steps on making free software for absolutely everyone is probably a worthwhile sacrifice, if you zoom out a bit.
Even purely from an altruist perspective I’d argue scenario 2 makes more sense as the resulting money can be used to fund a lot more open-source contributions.
Could in theory is very different from what actually happens.
In the end the purists approach results in better more productive software across even slightly longer timescales. That ultimately produces more value and thus a richer society than the kind of short term pump and dump schemes which SV is so fond of. Who captures that value is a different story than was that value created.
It could, but would it? For-profit companies usually don't suddenly turn around and start funding FOSS, unless that was part of their core mission from the start. If a company aims to make as much money, then that tends to be the mission they stick with, for better or worse.
That depends, not always. Sometimes the employees of said company manages to contribute back upstream, on the dime of the company. If the "free software" they used and contributed to have a lot of users, it's certainly not "leaves everyone poor" but rather "helps everyone, beyond monetary gain".
Sure, you can make the argument that it isn't that great for the company, and you may be right. But the world is bigger than companies making money, killing a few companies along the way to make small iterative steps on making free software for absolutely everyone is probably a worthwhile sacrifice, if you zoom out a bit.