I understand what you're saying. I don't think source is bad thing! Source is good.
But I think you're a little confused here.
The cryptographic building blocks of the new WhatsApp protocol are available in source code. You can get source for the Signal Protocol (fka Axolotl). You can get source for the Noise framework. WhatsApp borrowed these tools from a very open secure messaging project.
You're unhappy that the source code for the fully assembled messaging product WhatsApp isn't available. I understand that, too.
But you've overplayed your hand by arguing that not releasing WhatsApp source is fatal to its security. Even if WhatsApp had done that, the overwhelming majority of its users (in fact: basically all of them) would be installing binaries. If WhatsApp is so evil that they've backdoored their product, it is "supervillain monologuing for an hour while the hero escapes"-grade stupid to leave that backdoor in their source code. Consider that carefully when you trust binaries from open source companies, by the way!
In reality, source code does very little to resolve the government backdoor problem. If you want to ensure that your secure messenger hasn't been backdoored, reverse engineer and/or instrument the build you're actually running.
Nobody does this, of course. But while lots of people glance at source code for crypto applications, I think they're pretty much just kidding themselves. Having the source code makes them feel safer, but it doesn't actually make them safer.