In an ideal world sure. But I'm guessing Stallman made this license precisely so people can't "do whatever they want", which from a business standpoint is taking that code, modifying it in-house, and closing it off. Prevent a tragedy of the commons, so to speak.

Stallman didn't approach this as some idealist of "we make great code and everyone will share and progress society". Partly because tbf: open source was a lot harder to doiin his time. He came from an angle of trying to combat proprietary software. That's why he didn't make the MIT license (even if it preceded him, I'm not sure).

Possibly. The push to use MIT/BSD from businesses, however, is very much real. To mention one, Apple methodically purged their OS of pretty much anything GPL. Most businesses involved in opensource insist that everything should be MIT/BSD, and absolutely nothing should even smell of GPL. They certainly don't do it because of philosophical differences.