in reply to
Why is it bad to hide the source?
I think spending time answering why it may or may not be bad to hide the source is a distraction from the real problem, thinking that it's to one's advantage to hide the source even if one could. Code that's already written in an infinite good. It is much more profitable to use it to sell scarce goods.
For those that are focused on hiding the source, this would represent a change in their business model. That can be hard, but that's what it takes to compete.