I agree with your point on the difference between proprietary v. commercial, but it’s a bit hard to parse your example. “Free” is kind of an unfortunate word choice, as it obscures the gratis v. libre distinction you’re trying to point out.

Free/libre commercial software is indeed possible, and I’d love to see more products utilizing this model. We do need to keep in mind that “cracking” such software becomes legal (which is probably not a big deal because people would do that anyway).