Ruby on Rails is open source but that doesn't mean that all applications on rails are open source.
That will certainly change quite soon. In the earlier days, FOSS was not a concept that masses were aware of, but now is different. There is increasing competition in the smart-phone world and if one of the other manufacturers (say ASUS) makes their Android modifications open-source, they will see a drastic increase in Sales. To keep up with competition, Samsung, etc. will also have to do the same. In other words, competition will ensure the success of open source.
Can you expand on this? I don't think enough people care about source access. RMS's exact hardware choices don't go on to sell millions.
edit: I didn't see your username before now.