No, you're mistaken. Here's what happened. We used to call projects like this "free" (as in speech) or libre. The problem was that (lay)people confused that concept with gratis (as in beer).
The phrase "open source" was created to solve that problem. Since libre software usually implies that the source is public. The concept was then extended to everything. Now open source really just means available under an open source license, which is defined by the OSI.
You're making the same point RMS made when the phrase "open source" was coined (iirc) in 1998 Netscape went open source. He claims, rightly, that being free is more than having open source.
Not wrong terminology, changing terminology.
1 Mole = 007 Secret Agents