Indeed. We now live in a world where freeware is named open source. We are very sorry, Stallman.
"Open-source" can be "anything you can go out and grab a copy of and use" but doesn't give you much legal certainty about any of it, and reserve "free software" for the other, better thing.
AGPLv3 partially solves the issue by blocking people like Google from using it to build proprietary cloud services that take away their users' freedom. (It still doesn't solve the problem where providers use network effects to achieve the same end game.)
What in the world do you mean?
On the spectrum of "things that take away user freedom", withholding the source code is bad. Withholding the source code, the binaries and physical access to the computer is obviously much worse! This latter business model is heavily subsidized by GPLv3.
The first sentence of the GNU manifesto says this, and a few sections later in the document elaborate on the point:
https://www.gnu.org/gnu/manifesto.html
Note, in particular, footnote [1] which explains that its OK for distributors to ask for payment, but that it's never OK for users to have to ask for permission to use the software, and the section "Why I Must Write GNU".
Since then, software service monopolies became common, and all of the most end-user-hostile systems on earth rely heavily on the GNU system. At this point, we're paying for permission to use those services with our money, our data, our democracy, etc.
I certainly cannot give you permission to use any of the GPLed services that I have used, or that I've been paid to extend. Therefore, I say the free software movement has lost its way.
As there should be.