I think this is dangerously wrong. It completely glosses over and overlooks the fact that economies of scale are real and larger organizations can solve larger problems.
The guy with the machine gun will win the karate tournament if the tournament has no rules. Rules are necessary to create a level playing field when power distributions are asymmetric.
You don't need laws on your side when you can just buy up your upstart competitors, or price them out of the market with loss leaders.
In this context, one of the few tools the community has to create a level playing field, is software licensing. In particular, *GPL style licenses tend to make things much fairer, by imposing rules on all parties that prevent one from profiting asymmetrically off the work of the others.
Open Source, of the permissive variety, does the opposite. Corporations can use the code as they wish and not give back to the community. Community efforts to compete are always at a disadvantage because anything good they create can be folded into the proprietary solutions. So closed, built on open, beats purely open.