Gosh, it's not that complicated. They're just asking if the product is company-owned or community-owned. That's the distinction between web 2 and 3; just like the distinction between web 1 and 2 was whether the content was authored by the company or the community; cf. encyclopedia britannica vs. wikipedia. And yes, you can't just go from one to the other, it's a completely different way of running a product.
All the high profile ones so far, end up centralizing power and wealth under a handful of people.