Just because Free softwares is often free as in cost doesn't mean people aren't willing to pay for it.
I'll give you some analogy. It is not perfect, but it is the best I can find.
Consider a webcomic like megatokyo. Its contents is entirely free of cost. But you can buy the book Megatokyo, which often have the same contents, with a bit more extra, but the meaty contents from the site is still there. To date, Megatokyo is one of the best selling English language manga in the United States. Its popularity on the net continue to grow, and its sale will also grow.
Companies like RedHat prove that it is possible to make money, so that make your point moot. And there are plenty of ways to make money off Free softwares. Customization, patronage, and various other models.
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