Software development can be a place with employees, it's not limited to freelance. So I don't really get your point.
Government, and thus, laws, aren't supposed to be the moral guide. This is not a church. As much as I dislike proprietary software, it's their right to do so.
And it's completely on users that we tolerate that, instead of voting with our money by donating to FOSS. But then again, if you compare how much money you can get from selling proprietary software and from donations on FOSS, it's clear that FOSS isn't doing great, cause they haven't find a way to attract the same volume of money.
Communists killed millions without any wars.
PCs are needed to create lots of different goods. Where do we put them? The classification is vague.