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You pretty much confirmed his point. His entire idea is that it doesn’t have to be Kbin that makes better features, Kbin was simply an example. It could be Meta that makes better features. Open source developers will never be able to compete feature-wise with a corporation that will deliberately pour money into making more features than the open source developers, and Meta definitely won’t make them open source. Hence, as per your wording “Meta deserved to win in that case”, which is exactly what we’d want to avoid.
Your point is the worse product should win? Open source can totally compete on features: we have way more developers than them. With Linux I can have basically any feature I want if I tinker enough. It’s about: what’s the best software for people?