The fundamental problem I see here is the cloud. We were supposed to have easy self hosted applications and data on cheap always-online hardware. Instead, companies promoted cloud services with the intention of rent seeking through subscriptions.
If you look at the software that went from open source to source available, you’ll notice that almost all of them are cloud applications. Why? The companies that created them were hoping to make money through the same subscription model. But then, big cloud players like AWS just outcompeted them using their own software.
Would this have happened if the FOSS ecosystem neglected the cloud hype and gravitated towards self hosting? Perhaps. But not as badly. We still haven’t seen enough progress towards self hosting. It’s still very hard for regular folks. Genuine efforts like sandstorm didn’t find enough momentum. I hope this changes at least now.