For instance, Windows is closed source OS, yet it has successfully competed with Linux, which is open source.
That might not be the right way to put it. Despite someone's feelings towards Windows, the reality is that Windows has a much bigger market share than all other OSs combined. So it's not Windows that is competing with others, it's open-source alternatives that are successfully or unsuccessfully competing with Windows when it comes to taking their piece of the pie and userbase.
Agreed. This open source Linux that is trying to compete with closed source Windows, rather than the other way around. In general, I find it a bit unreasonable to be completely obsessed with the idea of open source without considering other important factors, just because the fact that software is open source, doesn't automatically make it superior. Open source projects can be just as buggy as closed source ones. For example Linux and Electrum had also their issues.