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They forgot that profit is the validation of your work and your value. If you can build something that people will pay for, and pay enough to have a profit over it's costs, that difference is the value you created that you are allowed to keep. The fact that customers paid that much means it was worth even more to them, that's the value they are allowed to keep.

Giving shit away just means it had so low a value that you have to give it away to even get users interested.

Also I cannot see how a non profit can compete with profit organizations. A for profit organization can summon an of army top talent to push your vision while a non profit would not be able to do so.