While true, your claim that nobody makes money with open source is false. The classic business model of selling IP doesn't work anymore, but there are other models out there. Mozilla being one of them.
http://journal.dedasys.com/2007/02/03/in-thrall-to-scarcity
Open Source Software is not a scarce resource: you cannot sell it.
Therefore, you have to sell something associated with it - developers' time, the right to integrate it with proprietary software, or things like that.
And iOS will be killed by Android anytime now. Right?
If "forced scarcity" as you call it is eliminated, the first copy of software, songs, movies, will cost a few billion dollars and the rest will be free. After all, it costs real money to feed the designers and coders.