I regret that I must say that some of the confusion comes from our own use of words.
The biggest part is the multiple meanings of the word 'free' in the English language. It has a lot of connotations that are objectionable or give the impression of 'cheap and tawdry', hence involving a lot of explaination to make our meaning clear.
With all due respect to RMS the term Open-Source gives a clearer idea of what's involved as an initial introduction to the concepts.
We really do need to find an English-language word that correctly (or more closely) represents the concepts of the French 'Libre'.
Despite the old saw about the best things in life being free most business people are very much imbued with the idea of 'you get what you pay for' and we have to dis-associate purchase price from the quality of software. I do not think that continued use of 'free' will allow us to do that.
When I first heard about linux and "Free Software," I remember thinking -- this sounds fishy. How can people write anything good and give it away? Well, Eric Raymond's "Cathedral and the Bazaar" influenced me in accepting the notion that enterprise level software can be created and distributed under a GPL license. For example, my company uses HylaFAX software as a multi-line incoming fax server and we pay for support as needed.
Update 13 AUG 2004
Looks like GrokLaw has an update on this thread.