Over time we've seen our business model eroding as other open source projects produce free versions of the same extensions and utilities that are our bread and butter
I consider open source software to be more valuable than closed source. I think the problem is that a working business model is not yet in place. I think a working model may look Red Hat, or Codeweavers -- but probably will be better. There is a business model out there, it will just take some more experimentation to find.
Why do I consider open source more valuable? Because I know it has a better chance of continuity and survival than closed source. Take something like Windows 2000: a good, simple and reliable operating system. Windows 2k has been obsoleted and is no longer supported -- and will stay that way. Try arguing with Microsoft on that one.
Take features and options... DX10 took how long to be available on XP? Only after a lot of complaints did microsoft back-port. Look at Linux kernel 2.4... Still has active support somewhere, and while not all features from 2.6 can be backported to 2.4 easily -- most of them _could_ be if the money and desire was there. That is what I call ongoing support.
I pay for open source where I can so that it keeps being developed, to keep the authors and people behind the software working on it. They show me value, I show them money.