I think we've overloaded the term for sure. I'd prefer honesty - "hey we have a new product/service/platform! We've opened up our customer tooling source code and made it free and available for anyone to contribute too"
To me releasing open-source to specifically try get people to sign up to a paid product is a sales tool.
Just describe your app, browse and select from different visual directions, the tool handles the rest, includes advanced controls and editing options for pro users
Try it out!
https://www.ftm.eu/articles/ashton-kutchers-non-profit-start...
https://www.ftm.eu/articles/ashton-kutcher-s-anti-childabuse...
https://balkaninsight.com/2023/09/25/who-benefits-inside-the...
https://balkaninsight.com/2023/09/29/europol-sought-unlimite...
https://balkaninsight.com/2024/10/11/europol-revising-confli...
My current company I'm now on year 4, and 3rd year leading a team building an internal platform for the business - for me it is a dream role - management mostly stay out the way, strategy comes from top down but our team make all the decisions, and after a slow start it's now paying off with several teams using us and helping drive through real requirements, and not the imagined ones from a few execs.
This has lead to constant positive feedback from all of our 'customers' who would never have been able to consider running their own content delivery pipelines - we're solving their real problems. Regardless of any politics, this is what gives me the energy to turn up every day.