The erosion of the term "Open Source" begins

In the beginning, there was

In the beginning, there was trouble finding information about open source software on the Web because searches for “open source” would bring up intelligence sites, where the term means collecting information from newspapers, etc.

The term was vague when it was chosen as an alternative to Free Software, and the Open Source Initiative gives its Open Source blessing to licenses so varied (including those Sun licenses with their many restrictions) that the term has not grown any more definite. Software people generally understand source is freely available, modifiable, and distributable- - it’s the restrictions on “freely” that make all the difference.

So please don’t be upset at all the FUD being handed around; it’s just life in the commercial software world. Free Software and Open Source people can be pleased at having shown the world how to grow the pie through cooperation, and the many echoes of open source, such as blogs, as having their effect on the world.

They were taught this trick

They were taught this trick by IBM, who were past masters of the art. For them Open Systems was countered with Open Architecture in a me too stunt, but as the saying goes "No Publicity is Bad Publicity" and UNIX and Open Systems were the winners.
Likewise, Microsoft is OSS's biggest publicity machine, and a me too strategy always makes the copier look like a second best follower.

You're comparing apples and

You're comparing apples and oranges. See the bottom of this page for an explanation of why they chose the name Open Source radio. From the page:

What about this 0pen-source name we have given our radio show? Have we earned our stripes inventing open-license applications for the Linux family of software? Or are we only ripping off a trendy phrase? To both questions the answer is emphatically: no. We are journalists, not programmers. I wouldn’t know source code if it bit me. But we are serious followers of the “social gospel” of open source. We believe in fact that the critical work ahead is to extend open-source ideas, so effective in computer world, deeper into politics, culture, media and the rebuilding of civil society.

There are more non-software applications of open source ingredients like transparency, community and sharing. Open source marketing, open source democracy, open source cola. I don't think these are anything to be afraid of.

Or maybe Richard Stallman

Or maybe Richard Stallman and the Free Software Foundation had it right in the first place: Free software, both Gratis and Liber. Gratis and Liber are two concepts that are very difficult to pervert and misuse, though they do come at the cost of seeming radical.