The software industry gets a heck of a lot from the government. It has been one of the top funders of development work, both as a customer and a direct employer. Many of the common software tools and technologies we use today wouldn't exist if not for government-sponsored research.
In general I agree with your other points, but let's have a little balance.
The money the government took to fund stuff would have been used in another way. But maybe they are better investors than the market; how would we know?
