I don't claim there's any easy answer.

To your point, market rewards are complex and doesn't always reward closed source. I would say the markets can reward companies that add value, and companies can add value by servicing a demand at reduced costs. One cost reduction measure is to use FOSS. For example, if you're building a data center, one cost saving measure is to use Linux as the underlying operating system over MS Windows.

I partially agree that pressuring consumers has issues, but the consumers we're talking about in this context are programmers, software developers, electrical engineers and other technically minded folk. Many projects only target dozens or hundreds "consumers" and, for those, advocating for purchasing FOSS might be a valid strategy.

I'm open to regulation but it's a coarse tool that favors large corporations. In my opinion, one way to larger regulation is to start small, show value from a growing community adoption and then try to push bigger. Linux was a toy operating system until it wasn't.

One minor point on regulation: From what I understand, there are some stipulations for (US) government grants to ensure FOSS artifacts get produced. I think violations of these conditions is common place. So we needed regulation in this area, we successfully got it and now we see that it's only as good as enforcement.