Earlier quoted context omitted.
This is a pretty pessimistic view. Customers are self-interested too: they want free content and services, but they also want absolute privacy, to ad-block everything, and generally cut off any possible revenue stream. This seems like it leads to a sort of local maxima where you produce the minimum quality required to drive users, with as little cost as possible. By cutting off ad-supported free users, Google is atte…
by cutting off free users they just opened themselves to getting undercut by a smaller company that can offer fewer, cheaper, targeted options. I just wanted an email for my domain and that's not worth 50 bucks a year. I'll just set up my own email system at this point, call it a learning experience and never be exposed to the rest of whatever was in Google Apps.
Free is only really free if you don't value your time.