Think of the Facebook internet access schemes that tried to make everything go through facebook.

You’re right that they’ve tried to do this and it’s ugly. But they’ve only been able to do it in places where they didn’t have to compete with an existing service, so I would argue that it’s successful only in a vacuum.

There are a lot of very successful businesses based around open source software. Open models are perfectly functional in the present. Their potential for success isn’t some relic of past idealism.