>Which is worse, a phone where you can't update kernel because of the closed drivers or a phone where you can update the kernel, with closed drivers?
Neither of those are good options because even in the second case, there are still vast swaths of code that upstream is not going to touch out of fear of breaking things, the end result being that you still get stuck with unfixable kernel and driver bugs.
>The open source community is not, for example, going to make their own high performance gpus.
The open source community includes a lot of companies. The high-performance GPU companies are welcome to join this community any time they like.