Re: Banks are rewarded for failure
Open standards enable direct competition and foster a free market (or capitalist, if you prefer) system. GNU/Linux is not a single operation of a single controlling mind (as Windows and OS X are). Whilst it does have a the concept of community; those communities often compete.
If one community isn't doing the job well enough, it will atrophy and die. e.g. Mandriva. Or the migration from Ubuntu to Linux Mint, or....
In a way, the most communal of development systems fosters the most competitive of development systems.
There is nothing stopping anyone, right now, taking the entire Linux kernel stack and forking to enter direct competition. In fact, that's pretty much what Google did for a bit.
If you are used to the Windows/OS X diktat environment, actual competition comes as something of a shock and often gets F/OSS given a "socialist" label. It may will be "social", but is as far as from "socialist". Only the fittest survives.