> 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.