I work for a small company that develops java applications, mostly in the financial integration sector. For us open source is a natural (and really the only sensible) choice; try and find a java application that doesn't include libraries from the apache foundation, for instance. You'll have a hard time.
I think you're going to get better quality in the long run when somebody's career is based on the product working correctly and meeting the needs of the purchaser and the market.
I don't agree. Products are being released before they are ready all the time because the marketing people had already arranged the launch party and VP John had promised SVP Jill that it would be out on time. Open source projects do not need to do that exactly because no career is at stake; they can afford to say 'no, its not ready' and delay the release.
For open source projects the driving force is not money but instead two things : 1. a product that the developers can use themselves and 2. pride in a product that is as good as possible.