Copyright

"That is simply not true. Please explain how I can legally use BSD code after it is compiled and included in some proprietary binary? - I can't. You did say anyone, not just the first person to receive the code."

Presumably, you can get a copy from wherever the author of the proprietary program did. You have to distinguish between "the code" (the thing the original author wrote and licensed) and "a particular copy or derivative of the code" (which may or may not be available or visible to you).