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The commentary isn't about making money.
One significant quote:

But if our goal is freedom, that changes everything. Users cannot be free while using a non-free program. To free the citizens of cyberspace, we have to replace those non-free programs, not accept them. They are not contributions to our community, they are temptations to settle for continuing non-freedom.

So when you said:
You can't sell software applications, MS would just copy it and bundle it with Windows. But you can give it away and sell services & software around it.

So, unless you're contradicting Mr. Stallman, you can't 'sell ... software around it' because that's still paid software.
And as for selling services, remember all the Linux companies that went broke on that idea. The ones that continued learned to leverage (read: exploit) free labor by adding paid proprietary software to it.

And, yes, Microsoft does incorporate some functions that once were treated as separate applications. A main reason is to supply a standard set of capabilities to developers. They want people to produce as many applications as possible. The Justice Department saw this as the 'applications barrier to entry' [to the operating system market]. Microsoft sees it as a way to make Windows indispensable.
In that sense, Microsoft has generated a lot of third party applications.
There are reasons to criticize Microsoft, including unfair competition when they find an app's function essential to their plans for Windows, but that doesn't mean they've discouraged everyone who hopes to make money off applications.
Posted by: Anton Philidor   Posted on: 01/06/04 You are currently: a Guest | Members login | Terms of Use
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Now another hundred years of FREE software!!!  GRindinAxTaRupy | 01/06/04
right on!  dg mh | 01/06/04
Third motivation...money?  Nigel Johnstone | 01/06/04
The commentary isn't about making money.  Anton Philidor | 01/06/04
Service  voska | 01/07/04
Other Motivations  virtualcharlie | 01/08/04
Free Software  Delaware Boy | 01/06/04
Not really...  Patrick Jones | 01/06/04
true, true, but..  Delaware Boy | 01/06/04
I think...  Patrick Jones | 01/06/04
... but it's not wrong for him to try  John L. Ries | 01/07/04
You can still get paid...  shawkins | 01/06/04
here's two  Delaware Boy | 01/06/04
I must have missed...  rapson | 01/07/04
The problem is...  John L. Ries | 01/07/04
Why should Microsoft bow down ... ?  coffeenite | 01/09/04
Freedom is always good.  DonnieBoy | 01/07/04
So what if...  rapson | 01/06/04
Laughable...  Delaware Boy | 01/06/04
Pompous....  shawkins | 01/06/04
Atheism is a belief..  Delaware Boy | 01/06/04
Atheism is a belief  shawkins | 01/06/04
Exactly...  Delaware Boy | 01/06/04
Lets be realistic  RedHat9User | 01/06/04
His moral code come from his work at MIT  voska | 01/07/04
Atheists can argue morality  RedHat9User | 01/06/04
Again..  Delaware Boy | 01/06/04
Framework?  NemesisNL | 01/08/04
Muslim's can point to the Koran. Christian's point to the Bible  NoB$ | 01/06/04
I'm pointing to your stupid use of apostrophes.  hognoxious | 01/11/04
Um...  Patrick Jones | 01/06/04
Morality and reason  Mr_Shifty | 01/06/04
Why?  voska | 01/07/04
Social Constructivism  rapson | 01/07/04
You describe society perfectly  voska | 01/07/04
It is saying that there is no absolute right or wrong  NemesisNL | 01/08/04
When will the inquisition begin?  Jill1774 | 01/06/04
"Free Software"  fdcampbell | 01/09/04
Users cannot be free while using a non-free program.  guitar player | 01/06/04
From Stallman's point of view, you are..  Delaware Boy | 01/06/04
Free doesn't mean without compensation...  Jose Jimenez | 01/06/04
better check the dictionary!  dg mh | 01/06/04
Better take your own advice  Jose Jimenez | 01/06/04
Why demand only free software?  dg mh | 01/06/04
My guess is ego...  Delaware Boy | 01/06/04
Not only software  voska | 01/07/04
Use what you want  FilledOut | 01/06/04
Another Crack Smoker  Zuel | 01/06/04
Home Depot would be the oppressor then  FilledOut | 01/06/04
bad anology  JWatson77 | 01/07/04
You're right,, my bad  FilledOut | 01/09/04
Taking a line from Axe_Grinder: Why all the whining?  Jack-Booted EULA | 01/06/04
Right on...  Delaware Boy | 01/06/04
Completely agree  RedHat9User | 01/06/04
On the other hand...  Jack-Booted EULA | 01/06/04
Absolutely  RedHat9User | 01/06/04
Programming is skilled work ...  Anton Philidor | 01/06/04
Huh,  Patrick Jones | 01/06/04
The principle is simple.  Anton Philidor | 01/06/04
Not THAT simple  shawkins | 01/07/04
Bait and switch  Anton Philidor | 01/07/04
So?  azurensis | 01/07/04
Principles and people  Anton Philidor | 01/07/04
By the same logic...  John L. Ries | 01/07/04
Outsourcing is also efficient  rapson | 01/07/04
With open source, once something is written, everyone can gain the benefits  hognoxious | 01/11/04
Two economic systems at war here...  quietLee | 01/09/04
Since you support free enterprise...  John L. Ries | 01/11/04
government intervention  canibal-in-denial | 01/12/04
Re: government intervention  John L. Ries | 01/12/04
Against my better judgement...  John L. Ries | 01/12/04
Get Rayovac  canibal-in-denial | 01/12/04
personal insults?  canibal-in-denial | 01/12/04
Yes, and programers get paid for most free software.  DonnieBoy | 01/07/04
Of course it is...  John L. Ries | 01/07/04
flawed argument  NemesisNL | 01/08/04
Geez  mikeeemike | 01/06/04
right  JWatson77 | 01/07/04
Win XP costs around 175.00, Red Hat Linux in a store costs about 70.00  NemesisNL | 01/08/04
I support OSS but Stallman is partially wrong  Tim Patterson | 01/07/04
Listen when he talks of freedom  DonnieBoy | 01/07/04
Thank You, RMS  John L. Ries | 01/07/04
Copy Right?  jkasey | 01/08/04
Nix Free - Promote Open Source Software  shanedr | 01/09/04
Mr.Stallman hypocrisy  Ardian Daka | 01/09/04
how do you?  rwgreene | 01/26/04

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