SaaS is the least free model for software. You have no privacy, no control, and in most cases can’t even export your data.
Thus open source actually minimizes freedom in practice, at least for everyone other than developers.
It’s extremely common for well intentioned policies and movements to have perverse effects that aren’t anticipated because the effect emerges from the whole system rather than from any single part in isolation.
The effect of a thing is pretty much unrelated to its intent, hence the saying “the road to hell is paved with good intentions.” The root problem is that humans are awful at understanding how a policy will manifest when embedded in a complex system.
I think this is also why every attempt at central planning a whole society ultimately fails.
FOSS may have accelerated things slightly, yet the mediocre quality and incompleteness held back its impact for a long time. Server side those deficiencies were less visible and could be addressed more gradually. Ultimately I think SAAS was inevitable as everything shifted online. Now even single-player, closed source games require an Internet connection.