Who won?

The Free Software movement wasn't really anti-commercial, they explicitly allow commercial purposes as part of the freedoms to protect, it's part of the first freedoom they defend, "freedom zero".

And it's not like the open source movement wasn't inherently political either.. wanting more companies to join the movement is actually a political position.

But also, it's not like the Free Software movement didn't want to have more companies adopt their philosophy.. they did want that, I mean that would have been awesome if it had happened. And when possible the FSF has actively tried to convince companies to get on board, they even have run programs to help companies promote themselves as certified by the FSF, such as the "Respects Your Freedom (RYF)" certification.

What makes the Free Software movement different is that they actively see proprietary software as evil. They see freedom as a right, something mandatory, not something to merely be "open" to. Going out of your way to not use closed source software, to the point of crippling yourself digitally if necessary, is then the ethically correct behavior. Whereas the "open source" movement sees it more as an option, something that can be useful but not strictly necessary, they wont consider it inherently bad/evil to use proprietary.

This is akin to someone considering buying ethically sourced shoes as something optional vs considering it a moral obligation so as to not be complicit to evil practices. Or say.. saving energy being an option that might be convenient for you personally vs a moral obligation with the planet.

The business model at the time for most commercial projects was based on offering software as a product, not as a service, so they didn't want to release their code. When eventually the shift towards services started to happen, companies gravitated towards the "open" side because it allowed them to take advantage of free software while retaining proprietary software for those situations in which it benefited them, without being flagged as "evil" by the same community they were working with.