In practice I agree with your points, but it's also important to consider that the open source model is alive, well and is directly and indirectly at the heart of employing many people. I won't make the argument that society is willing or could switch to that model successfully, but I also wouldn't be willing to say it couldn't work, either.
> consider that the open source model is alive
Not everything revolves around software.
Also even then OSS generally seems to only be universally successful in areas where software is a "cost centre" i.e. companies are willing to invest into it when it makes it cheaper for them run their business than building/buying proprietary stuff or they build their products on top of it (A but almost never when it's the actual end product targeted at consumers.
And if we extend the definition of software to video games, OS is not even a thing there (besides middleware of course which falls into the previous category).
>t's also important to consider that the open source model is alive, well and is directly and indirectly at the heart of employing many people... I also wouldn't be willing to say it couldn't work, either.
I would. Many people who contribute to FOSS either already or proceeded to work on proprietary technology which makes money. Like Nintendo. The FOSS work in good times is a passion hobby, not a means to live.
It'd be nice, but charity for most ventures has never ventured to be a way for the charity giver to sustain a liveable wage. If it could do that then I'd be more on board for FOSS being a model to follow. Instead, just like when you list a couch on Craigslist, you want to charge even a small price (and maybe not even collect the money) just to filter out the most unhinged customers who somehow become even more unhinged over literal free stuff.