Very true, but if the company has raised VC funds, step 3 is inevitable. Even if the original founder resists making the product worse, the future execs won't blink an eye.

Open-source on the other hand, isn't profit-driven as much. The builder is making it for himself and for the love of it. Give me that bread maker 10/10 times. And yes, that bread maker might also start to chase profits and make the bread worse, but I can fork his product and be on my merry way if he does.