I haven't read up on the origins of OSS, so I can't really comment on why it was designed. I will at some point read up on it more.
I agree Open Source & Non-Free (as per R.M.S.) would be much more commercially useful than Free in a lot of circumstances, because if I pay $1000 for some Free as in Speech software I can then go and sell it to your competitors for $10.
The only way I can think that this is not business-destroying if said software is so tricky to set up that it only makes sense to buy it from the original vendor who will set it up for you in the price - in which case that probably breaks the spirit of free software.
I agree Open Source & Non-Free (as per R.M.S.) would be much more commercially useful than Free in a lot of circumstances, because if I pay $1000 for some Free as in Speech software I can then go and sell it to your competitors for $10.
The only way I can think that this is not business-destroying if said software is so tricky to set up that it only makes sense to buy it from the original vendor who will set it up for you in the price - in which case that probably breaks the spirit of free software.