I wouldn't assume most developers are paid for providing services, there's an awful lot of developers out there writing code for products used internally or as part of a projectthat is sold at a significant price to very large customers.
I'd almost say that most developers are paid to write software and not provide services. Though it really depends who you refer to as 'end users'.
there's an awful lot of developers out there writing code for products used internally
Exactly. I consider that to be more on the "services" side because the ultimate goal is for Bob to get his TPS reports, not to produce a J2EE reporting framework.
A better way of expressing my point would be that most developers aren't in competition with open source; it's much more likely that open source software allows their jobs to exist.
I'd almost say that most developers are paid to write software and not provide services. Though it really depends who you refer to as 'end users'.