He sees everything through his 'free software' glasses, the same way a dyed-in-the-wool communist sees everything through his Breznospecs.Just as a dyed-in-the-wool capitalist sees everything through their Smith-o-specs.
We have always lived in a world of complete economic reality, by obvious tautology. It is that economic reality that gave rise to the GPL and the Free Software Movement. These were market instruments made to route around other market instruments perceived as damaging or inefficient. That there is so much under the GPL right now suggests that there was real market damage or inefficiency being routed around. Just because there isn't money involved in this doesn't mean there isn't a market involved. This market just happens to trade in something other than money; you seem to see something wrong with that.
I think I see why, as well. These people, who will work on software for free -- for hacker kudos -- are perceived as a threat to those who would work on that same software for money. They are not forced, they chose to, but it still means market forces threaten to drive the salary of a developer down. You think this will drive hackers into economic poverty. If anything, it has had the opposite effect. The software people release for free earns them a reputation that allows them to later release other software for a very handsome profit.
The open software movement cares more about its users than it does its developers.
The movement is very little apart from the developers, so this reduces down to the developers caring more about the users than they do about themselves. Are they being too altruistic? I don't know. If they are, they'll soon find themselves being less altruistic out of need. If not, I don't see why we need to cast aspersions their way. They choose to work this way.
As for threatening the livelihood of programming work-for-pay, it isn't. There are still problems out there that you would need to pay people to work on, partly because they haven't forgotten about their rent in all of this, and partly because there just isn't that intrinsic motivation for some of the software people need written.