>Why would you want to restrict reselling?
Depends on what your philosophy is. You believe in the software commons and the free sharing of software? You would want software to remain as a public good so no one can profit from it exclusively.
Are you a business who made some software? You don't want others to resell it because it's your work, you made it and you don't want others to freeload.
>If you don’t want reselling, then don’t make your software free/open source.
Sure, and the consequences of this will be much more all-rights-reserved proprietary software. A huge loss to users and developers.
>But it doesn’t have the features of free/open source.
Yes it does. Just because it doesn't conform to all tenets of the OSI definition, many useful things are still kept. The most obvious is the right to view the source code - which is highly liberating in an age where many vendors lock their systems down or try to offer everything as a SaaS where you don't even see the binaries.
You usually also have the right to modify the software under most of these licences - you are the user but you find a bug in the software, you don't need to wait for the vendor to fix it, you can fix it and share your modifications to other users (either paid or not).
You can also have the right to contribute changes if contributions are allowed, which is also a positive for everyone.
There are many freedoms which can be granted without necessarily going for a maximalist open-source approach but still preserving the right to exploit your own work and prevent others from exploiting it.