Which is exactly how FOSS is supposed to work. You give away something free of charge and available to everyone and you're getting something back from your users.
That doesn't make the software's user "the product" though. In your case the developer is making himself the product he tries to sell, not the users. This is really not comparable to advertisement and data collection.
That doesn't make the software's user "the product" though. In your case the developer is making himself the product he tries to sell, not the users. This is really not comparable to advertisement and data collection.