I can play this game too: you know what the software industry was like before Microsoft and Apple? EVERYTHING was open source. When you bought a program (if they didn't throw it in for free with the bloody expensive hardware) you ALWAYS got source code. People still sell open source software; I've never understood why people think that commercial software is incompatible with open source. It isn't.
Everything was open source, but "everything" wasn't much. There was no VisiCalc, no WordStar, no Sierra adventures. Bill Gates's packaged software business model allowed a lot of new software to be created.
your own statement explains why it was like that: because software was just a small commodity passed along the real stuff (the hardware). Not much of an industry there...
??? What utopian world did you live in? Before Microsoft and Apple was before the Internet. Open Source was a dream, everything was proprietary, software engineers were just Coders.
What does it even mean to say "When you bought a program..." in the context of Open Source? Of course if you paid for it, it isn't open source.
The very GNU GPL itself explicitly allows code licensed under it to be sold for money. What makes you think that code transferred for money cannot possibly be Free?
Everyone always says this, but the majority of the community is very much against you making money on it and will destroy any chances if you making any sort of profit by releasing the source for free (which is allowed under the license).