I'm not really sure if one can say peer review happens on the majority of the open source projects. Yes, all the major projects do it, but what about the smaller ones?
The majority of the Open Source projects are small projects with 0,1, maybe 2 active developpers, and I would dare to say most are just begining to learn how to program (that's why they started the project, so they could get comments that would allow them to learn more).
It's true most of this projects will not be found on the debian repository, but even if they are "weak" that doesn't make them less open source than the major players.
If they are good (and with some luck), they can attract enough attention from the big guys and thus get a good code review, but I would say most of them become just one more dead project on sourceforge (which in itself is not bad, because others can use it's "hashes" as a starting point).
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