FOSS is not necessarily a rejection of the profit motive, it just says that there shouldn’t be restrictions to redistribute work to the masses. Just look at Linux itself. The project is maintained largely by contributions from (big tech)[lwn.net/Articles/915435/] even though it’s under the most restrictive copyleft license.
Also, I’d rather the factory that has the incentive to reduce prices to compete with others instead of the one that has all the incentive to increase costs (wages).
Besides, you can absolutely create any co-op you want in a capitalists system. If you think it’s just as innovative then just go and start one instead of screeching at people that capitalism bad.