There is no advancement without profit. Advances are a product of market competition. When no company can profit from investing in R&D, there will be no R&D.
It’s not that those things aren’t important in a functional economy, but that your absolute thinking cannot explain open source, and thus your theory is incomplete to explain human activity.
For a fair comparison of “advancement” in open source you have to discuss free open source applications where a commercial version of a similar app exists.
Photoshop vs Gimp, Illustrator vs Inkscape, Microsoft office vs libre etc etc. objectively speaking the commercial version is going to be better across the board.
Open source variants are getting closer these days like Blender and Godot but you’re on a different scale of waiting for those advances to catch up vs the commercial for profit versions.