I wouldn't agree that the distinction is so clear, unfortunately. There are people with agendas on both sides. For-profit software obviously needs to make money

I wouldn't agree that the distinction is so clear, unfortunately. There are people with agendas on both sides. For-profit software obviously needs to make money, so whatever people are more likely to pay for is prioritized, even if it's not what a typical user wants the most. Developers of free software are often people with full-time jobs and limited free time, so whatever is more fun to work on and/or matches their skillset is prioritized, which, again, might not be that annoying bug that everybody wants fixed, but which would involve re-writing half the code. I am generalizing, of course: VLC is one of the counter-examples.