The business model of selling copies of software is becoming scarce. You're essentially arguing that this is solely due to licensing. I see it more as a market adjustment where we're collectively deciding to treat non-scarce commodities realistically.
SaaS is the same pig (selling copies) in a different blanket, so you should adjust your rant accordingly. The three pillars of the open source model are selling services, donations, and advertising. You might add a fourth in monetizing big data, but that pretty much tends to go hand in hand with advertising anyway.
The idea that people will stop writing software if they can't sell it is ludicrous. Taken to a logical extreme, you're implying that if you could not sell MS Office, people would not need word processors. If there is one concept that needs to be forever laid to rest as an argument, it is that people will stop doing something intrinsic to human nature because of some external phenomenon. People will stop writing code, and needing to have code written, just after we create the last piece of art, and sell it as the last business transaction. Approximately never, in other words.
Now, as far as your proposed licensing goes, since you haven't stipulated terms under which the binaries can change hands, they can't. Simply providing software to someone does not grant them the right to redistribute it. You must explicitly grant someone the right to modify and redistribute copyrighted works, or abrogate these rights by making the work public domain. Whether or not they have source code is pointless if they have no legal right to do anything but read it. So, as stated, your scheme is not compatible with the GPL and doesn't fall into any meaningful category of "free software".
Further, unless you've made something public domain, there's no way for downstream vendors to change the terms under which the code is distributed. If you have made it public domain, your ability to enforce control is null and void.
In summary, your licensing as written is a great way for customers to get sued for copyright infringement. Fixing that flaw either makes it public domain or mostly identical to some sort of copyleft license. To summarize the summary, you may want to read more about copyrights and basic economics. To summarize the summary of the summary, people are a problem.*
*with apologies to D.A.