Mostly agree, but the "incentive" focus is a misnomer. Humans don't just sit around and stare at walls when they're not "incentivized". Incentives in sociopolitics is just a rebranding of coercion, getting people to do things they don't want to do. People are incentivized/coerced to work at McDonald's because otherwise they'll live on the streets, the housing scalpers will make sure of it.
FOSS exists and isn't at risk of dying. Yeah, it's ideal if the people working on FOSS things don't have to also work a soul crushing day job, and yeah maybe when their soul is crushed they'll lose interest in the things they enjoy doing, but we shouldn't frame that as them getting jaded towards FOSS projects. It's actually just depression, and it impacts other hobbies too.
All that being said, I'm all for donations to people who do FOSS work so they can escape and do the things they love, it means better FOSS products and happier developers.