Our visit to OSCON last week exposed the rift between Web 2.0 (a.k.a Software as a Service) and open source. There’s an excellent roundup here. It’s short reading and hits the high points well.
Effectively, Web 2.0 lets you reap all the benefits of free and open source software (FOSS), without advancing FOSS. Smart people currently sit on both sides of the issue, but for the foreseeable future, the “SaaS loophole” will remain.