KK, you know I love ya, but FreeSites aren't as evil as you think.

The big guys aren't breaking the back of the industry, this industry is just like every other one. They just push the limit the farthest. We bitched about AL4A and thehun 5 years ago. They were "stealing" bandwidth then. They were killing the industry. They wouldn't last. Free hosts came along, they wouldn't last. So what has changed since then?
Nothing. Sites have come and gone. Prices for bandwidth keep going down. The standard for quality on the net keeps going up. Home connections are becoming faster. Computers are becoming faster, more capable, and more tied in with other media and comunication products. People do expect things from the insides of paysites now. 4 years ago you could start a paysite with 500 pictures, a couple silent movie feeds, charge 14.95 a month and it was cool. Then the big guys kept adding feeds, adding content, adding design, and have pushed the cost per month to nearly $40.00 a month. And for what? Some 2"x3" jerky movie with 1 channel sound. That sucks. For $40 a month some guy can order 2 porn DVDs and have him shipped to his door. That's hours of DVD quality content!! Compared to a bunch of shit that he has to download each time he's online, tons of feeds that are hard to sort through andkind of work, a bunch of regurgitated pics, and any other hassle that can come from working online. The surfer continues to want more. The market will give the surfer exactly what the market supports. And as long as the barrier of entry is so low in this industry, it will continue to leave very tight margins for those in it. It still a maturing industry...try as you might to rush it, it will find it's equilibrium in it's own due time.
People are fickle. They always want more. That makes them pretty damn predictable. Given the choice between a 300x400 still shot and a Digital wide screen movie updated 30 times a second, with 6 channels of digital sound, 4 different viewing angles, big screen quality, interactive menues, and 4 hours of non-stop playing...I will choose the latter. The net isn't there yet. Just give it time.
Sometimes, I just have to throw in 2 pennies.