I do think there are some software that in reality, for most people (including large swathes of non-technical people), work better in a for-profit model (which is usually closed source).
But there are some things that work better as open source.
I think it really depends on the fundamental problem (i.e. ends) the software (i.e. means) is trying to accomplish.
I personally do not think you can categorically say one is better than the other, because it really depends on the issue.
Why isn't there an open source Google search, that works better than Google?
If we can open source our encryption algorithms because that ostensibly makes it more secure overall, why can't we just open source all our algorithms for spam filtering, especially to the spammers themselves?
If you look at all the most vibrant communities online, are they closed source or open source? (Twitter, Facebook, Reddit, HN itself) ... vs. say, mailing lists, usenet, etc.