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A free site has a much higher ratio of advertising to content, typically 3 ad spots per page, and two "lead in" pages before the gallery gets shown, so basically 6 sale chances before the gallery, and 3 on the galleries each, so 12 shots at selling. This compares favorably to a TGP gallery, which often has only a couple of links off and really only one shot to sell (the gallery itself).
As for the new rules, well, only a very few sites are actually doing that, and often free sites are built out of two TGP style galleries anyway, so you are looking at more than 24 pics to start with. As for size of images, well, 600 X 400 images look very small on a 1600x1200 monitor, and probably aren't the best sales tools overall. It sort of makes me think that someone increased their monitor resolution and realized how crappy the little pics looked... but that is just a guess.
120 seconds of video (6 clips of 20 or 12 clips of 10) has pretty much been the free site standard since the get go of video sites. Nothing new here.
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