> Stallman goes further than my preferred definition, insisting that Free Software must also be freely redistributable with no required payment.
What do you mean? What would free software requiring redistribution payment look like? Say I send a copy of a free-as-in-freedom game that I may or may not have modified in some way to a friend or on a forum, should I pay its author(s) for this? How could I, for instance, commission someone to modify software if I want to change it when I don't have the skills to do so myself, in your definition of free software? I think a simpler definition, like Stallman's, is less restrictive of software modification.
Restricting how software is redistributed holds a great deal of power, especially when you remember the idea behind free software is that you get to have control over your software. Copyleft is such an example -- it is highly restrictive.
I get the financial issue one could have with free software as defined by Stallman; freeing the software you distribute is a difficult decision. Free software is advocated from the point of view of its users, who are ignorant to the difficulties one might face when developing and publishing software. If this is a decision you can make, it is kinder to your users to free the software you publish.
Side note: free software requires one to examine how they value commodities. Do you value the object itself, or the human time it took to make it?
In a world where software is thought of as free by default, developers can be paid not per copy, but per patch. I believe such a world would be better for software quality because I agree with you that competitive markets are better at aligning with consumer interests than monopolies.