I'd argue the opposite. That OS-the-product hasn't actually succeeded because it doesn't have a business model that works. I'd guess about 0.000001% of open source projects actually make money (sure, maybe making money is not their goal, but it sure helps spread the word). Where as 100% of proprietary products make money - whether they make enough money is a separate issue ofcource ;)
I don't believe that the FUD from MS actually accomplished anything besides a very minor short term benefit where people didn't touch the GPL for legal reasons. Businesses are smart and they are very capable of figuring out what does and doesn't make money. Heck even Google figured out that being open is bad for business.
OS-the-movement OTOH is going strong. Its cool to have contributed to an open source project. Its cool to have all your work up on github. Its pretty much a gold star on your resume if you have a popular OSS project...