Your first point is right on. In the early days, Linden Lab's executives always said that SL would eventually be 100% open source, client and server, like the Web (and Linden Lab would just be one of the hosting providers). But they never open-sourced the server code, so people who thought SL would become "something like the Web" (i.e. not controlled by any one company) became disillusioned. I'd definitely put myself in that camp.

Your second point explains you, but not why the population at large (most of which is not doing anything creative at work) prefers to paint by numbers when not at work.