Yes, in some circumstances that's true. For example, recently I think it was a GNU codec library that was released under a permissive license, because there are plenty of proprietary video codec libraries and for a free format to win, a permissively-licensed library is useful.
But Stallman put the GCC under the GPLv3.
So I don't think your comments re: papacy are terribly on-point.
"They have also traded away a way to encourage others to keep it open in return for wider adoption."
s/encourage/force/
If you have to force people to do what you want, who cares.
Leading is about getting people to go in a direction they may not want to go.
Not pushing them off a cliff.
They have also traded away a way to encourage others to keep it open in return for wider adoption.
Interpret that as you will.