Earlier quoted context omitted.
I think you hit the nail on the head. But it does restrict the ambit of the possible for web properties to ones where the end-user both understands the value and is willing to pay the cost of the service being provided. It would be impossible to build facebook or google without an advertising based business model, you just can't reach critical mass.
" It would be impossible to build facebook or google without an advertising based business model," really? just like that . . . why give up so easily? let's throw some intelligence at the problem instead of just assuming it's not possible.
The best estimates I have for what it costs google to provide service to one customer for 1/year is $20 So yeah, impossible, at least in the given constraints; like asking for a 50 seat airplane that's self-piloted, safer than current small planes AND costs less than $500 to build.
You might argue about my definition of impossible, but this isn't reddit, and I hope you recognize and understand that difference.