No?
As jeremyjh wrote at https://news.ycombinator.com/item?id=50032733 , "A system that the hardware owner cannot modify is not really on the same wavelength as traditional UNIX.". Since traditional Unix was source-available, with the expectation that people would hack on the source, I fully agree with jeremyjh's characterization.
I think you are talking about a later era in Unix history? The early Unix licensees were educational institutions and commercial sites, not vendors or resellers.
Every one of those academic and commercial end users got the source code.
From https://en.wikipedia.org/wiki/History_of_Unix :
> "In 1973, AT&T released Version 5 Unix and licensed it to educational institutions, and licensed 1975's Version 6 to companies for the first time, ... Anyone could purchase a license, but the terms were very restrictive; licensees only received the source code, on an as-is basis. ... Unix was entirely unsupported by AT&T"
From the same link, "Perkin-Elmer began distributing Wollongong Unix for Interdata as Perkin-Elmer Edition 7, the first version supported by a computer company". That was in 1980.
So while yes, "Traditional UNIX was entirely proprietary" and could not be redistributed to non-licensees, it was also provided with "full user control and manipulation of the OS", and not merely "connected with well-defined text-based interfaces", quoting jdiff at https://news.ycombinator.com/item?id=50033080.