As I'd heard (in class, from the teacher's curriculum, no less), it was due to the work of Linus Torvalds to keep Linux free that it became violation of law to charge for the operating system itself. You can charge for the support, the manual, the disk it's on even, but not the operating system. Nothing to do with Open Source definitions.
EDIT: And, yes, I didn't read all of that yet. It's a bit early in the morning to be able to make sense of it.