You could have just called this article "The FSF: An idea whose time has passed".
There are a number of things you wrote that just make absolutely no sense. Whether you want to admit it or not every single internet company used free and open-source software. From the Nginx and Apache servers to the OS level services they run on. You may say that this is "industrial" open source software but the result is the exact same. A tool or service I can independently verify and freely use. The only distinction being a licence.
You talked a lot about security and vulnerability of FLOSS as if this is an actual concern. Surely nobody would actually ever suggest that obscuring software is a good security strategy?
Lastly you seem to brush off security and privacy concerns as conspiracy as if the closed-source software we use every day isn't designed to undermine privacy. We no longer live in a world where the only concern from software is an exploit a creator added to it. Your idea of nationalising software development is a far reaching idea that would undermine the users privacy further and isn't based in reality.