Jason, you’re absolutely right that some people are unable to see beyond the business models they’ve become used to. The thing is that, given the choice, people love openness and will pay for it.
Look at $20 DVDs against $5 DivX disposable DVDs. If the DivX discs had been around first the industry would have thought anyone proposing a less restrictive format was insane. The DVD proponent would be accused of wanting to run the business like a charity and giving away its sales. Meanwhile, they’d be missing out on millions of dollars in sales to people who wanted the less restrictive format and not even knowing it.