This is the right terminology. Model weights are literally compiled binary data; they are the output of an algorithm run on a bunch of source data. That training dataset is the "source" of the model. Training data (or the scripts used to generate it) is human-readable and modifiable, like source code. Binary weights are not.
It does, but does it matter? Even if every software released in 2025 was proprietary, doesn't make their published binaries "open source" because no other software could be classified as "open source".
We name things based on what they are, not based on the lack of other things.
I'm not a lawyer, but I believe that the weights aren't subject to copyright. So, you can use them outside of Meta's license agreement provided you get them from somewhere else.