No, this is not wrong (but you're not wrong either).
When discussing the goals behind AGPL, it definitely shouldn't be described as Open Source license (although it technically is one), but a Free Software one, since the whole difference between those two terms (highlighting the political issue as opposed to technical one) is actually relevant to the intention behind the license.
The goal behind licenses written by FSF is to ensure that distributors of your code do not restrict freedoms of the users that the license guarantees them. If you think it's about "encouraging more usage of open source", you clearly miss the point of copyleft licenses.
No, this is wrong. The OSI has the AGPL in its list of approved licenses. https://opensource.org/licenses/AGPL-3.0