I feel like it's getting to the point where the larger closed source companies are doing anything in their power to eradicate the open source movement.

You're ignoring the huge contributions of resources and name recognition now firmly backing Linux and by extension OSS made by companies such as IBM, Novell, HP, Oracle. While Microsoft definitely would like to see the proprietary software model continue unchallenged, they have plenty of opponents in the business world looking for options to undermine their hegemony. OSS is becoming a tool in the struggle between corporations for profitability and I think in the long run the competition between them will tend to strengthen it. And even if five years from now the companies have abandoned their dalliance with open source, the community will still be here quietly working, just as it was long before it became sexy.

As for the frightening developments legislatively, we need to support groups that represent us like the EFF, write our congress members on important issues (Note that a membership with the EFF makes sending (personalizable) form letters very easy), and hope like there's no tomorrow that bad legislation like the DMCA bites enough people on both sides that it sees reconsideration.