What you have been arguing amounts to the same type of protectionism we've seen destroy the economy every time it's been tried. Intellectual property is no different than steel or textiles.
I can understand why Linux is distributed freely. This is an environment dominated by a couple of companies distributing and licensing Operating Systems. If you're selling applications (like Oracle at $10K a pop), then it makes sense to distro the OS for free. Especially if some other company's already done the distro for you. Double espcially if the company that did it is offshore.
I'm not a protectionist, I just don't support building up communist governments at our expense. Obviously, some can't see past their own free copy of linux. But it's no accident communist governments like Vietnam's are passing laws requiring all their systems use open source. Some don't care. I do.