I honestly don't believe that if you charged for OpenOffice.org, Inkscape or The Gimp then people would prefer them over their closed source equivalents. I think it's just trying to ignore the the obvious answer that they simply aren't as good.
There's also plenty of counterexamples where freeware proprietary software has beaten open source software, as well as many examples where open source software has beat commercial software (most notably in tech areas, such as Apache, or Linux versus other Unix-likes).
I think people should simply face facts: Open-source software isn't automatically better than proprietary software.