My takeaway from your bullet points is more specific – that you shouldn't bother with open source unless you want to advance the state of the art while being perpetually unpaid and unrecognized, which I can not agree with in any way.
> Many open source developers start with intentions like "advancing the state of the art" and over time become disappointed because others build businesses and profit off of their creations.
I just don't buy this distinction of starving artists vs commercial enterprises. Especially as the project grows in scope, complexity, and popularity you might need to spend more time on it to keep it in good shape, and time does not come for free.
While you might have been willing to spend 10 hours a week on it for free, the now-grown project would really benefit from you working on it full time, but that's not feasible to you, so you turn to monetizing it. There is nothing wrong with wanting to both advance the state of the art and to be paid for it.
It's not about being disappointed with others making money off of your project, it's about ensuring sustainable development of your project.
If OSS projects weren't funded by a chance of money or fame, we'd have much less such projects available to us, especially significant ones, because not everyone who currently contributes to OSS can afford to or even wants to work full time for no pay. I don't know why that would be a desirable outcome to anyone.