I have been in loads of comunities, and must say this one is one of th emost gentle and friendly. Maybe the best I have found, in that.
About open source and AAA comercial games companies. Those are two different worlds.
In general, yep, a comercial big house will only count on expensive tools like Max and Maya(sorry ,I 'm just a 2d/3d artist) , and for code, only hard worked c++ solutions by extremely good employees. If there's no time, they may buy a kickass physics library, etc, but... in many cases, open source ones are used.
But that's another world, I've been there. No time for anything, uber high pressures all the time, each worker has just some repetitive task, and all the fun is often removed.
Open source solutions, like open engines, and art tools like Wings3d and Blender, give the indy coder the ability to do explendid projects at home, and at his/her own will, doing very personal and creative productions.
It has been done, maybe smaller than an AAA game, projects with this tools, that surpass quality of aaa games, just they can't compete in volume. Is not the same to have an army of artist behind you than having a friend that may be extremely good at it, but he's only one. If u know your limits you will do small wonders , anyway. And I am one of those not worried for the size
There are examples that would show you why in certain aspects, open source even has surpassed (while it is not the main idea!) comercial tools. Several very good professionals of CG art, in companies, have preferred to model their organic charcaters with Wings. I did in companies, but I am thinking now in Maya, XSI artists. I am not saying Wings is bettter in modelling than those, just that...art can be done ALLWAYS. I can draw something with a raw pencil , and do art, and can be not too inspired other day, use my expensive oils, and maybe do something not so good. If I am overpressured in a game company, and my criteria is changed every day or not taken in consideration for marketting rules, constant changes, etc...There's loads of artwork of bad quality in aaa games. I have seen too many human models with bad proportions, bad skinning , terrible deformation...even in very well known games. Most people do not notice, anyway.
I have seen very good games done with free alternatives, with free tools. And extremely good art make with Blender and wings.
I would only agree with you in one point. There's no way a Blender/wings/[and insert free engine here] could compete with an stablished company of an army of workers, using the blazing quick tool called Max and very good/expensive/ended comercial engine...
But the aim is not compete with those, but you can still make pieces of art that, bein smaller, if done with more ...ehm...love, can be more enjoying, though usually smaller. I personally prefer these little jewells. Lately comercial games (special corps, world war 2 games, etc) are boring me incredibly. Even I find my self preferring to test an amateur special corps game... as...well, at least I check that the comercial pressures weren't there imposing all...
There are sometimes that an open source project (game, engine, art tool) has not enough strenght behind to survive. But lately I am seing that then, the comunity helps and share the weight with the author, or even just they continue.
SOmehow, I have seen game companies (recently and AAA one that has broken, incredibly, I had a friend there) , or 3d tools companies fall strongly and disapear. Your tool can suffer this. Is depending only on high quantities of money, and that's not so easy to maintain.Usually , open source depends on a a group of enjoying individuals, and they don't even have to be the same ones all the time....
Blender is proving that. I'd agree that these projects cannot compete with the high tools and standards. I have heard and seen write in forums the opposite and is absurd, crazy. Imho believing that can lead to strong disconnections with real facts.
In the past, only chance for someone wanting to make indy games, or hobby art, was pirate something. Now you have a more gentle and nice way.
I modeled wings at much more speed than my mate at the game job, and he was using Maya and Max. Why? well, because probably at the end Wings is reallly quick in organic modelling . Or maybe I had been more dedicated to organic models than him. I am not saying I wasn't better than him or something, just that you'd be surprised of what can be done with an open source tool if it is good...
But I'd agree that putting open source as a world that, in videogames, can compete seriously with the big companies and its expensive software...would be to carry it way far...
wings, blender, have loads of stuff they plainly CAN'T do , and which you need both in artwork, and videogames. Same with engines. Today AAA standards are crazily high...doing a game of that quality anyway, with all those super high res count models, is now getting too similar to a big film production, there's no way an independent team (and I have seem some of excellent quality; beware, there are some kickass pros that love to do an indy personal and creative project on weekends; the quality is ensured, but the size and number of levels, etc , is smaller) can do such amount in a one or two year time frame.
Basicly, I find very interesting to hear voices like yours in open source comunities. As otherwise, some people can end up taking open source as a religion, and thing their particular open source project will rule the world, and the truth is very different and I prefer often much more intermediate concepts. IMO, open source is not bad, is good, is just not up to the task to beat those expensive things, but as it can beat it in some quality aspects, it will allow to make very nice things, as have aready done.