It's basically impossible to get off the ground competing against google when 30-40% of people are just freeloading your service, and 80-90% think the internet is an ethereal realm that everyone could have ad and subscription access to if we could only agree to starve these greedy middle men.
For search, Kagi has had a growing fanbase for a couple years now, but let's take things that have been easy to get for free for decades: Movies.
People have been, with relatively impunity, able to torrent movies for free for a very long time. It's not hard, and the only way you're paying for it is ads for hot MILFs in your area. And yet, despite this having always been an option, somehow Netflix and Hulu and Disney+ and HBO Max have managed to make fairly successful businesses selling movies that could have been pirated.
I could get YouTube as ad-free with an ad blocker, but I pay for YouTube Premium. I could get all my music for free with Redacted, but I use YouTube music, or I buy CDs. I could torrent video games but I just buy them off Steam or GOG.
This isn't new either; there were thousands of free forums on the internet in the late 90's, but yet people still bought accounts on Something Awful for quite awhile (and indeed still buy accounts, but with much lower numbers).
We can certainly argue about how much value these companies are providing, and we can argue about how it's annoying how there's a million different streaming services now and how that's really irritating, but my point stands: people do pay for things on the internet.
We don't have to accept that companies need to sell all our data. We don't have to accept being bombarded with ads. We don't have to accept that people won't pay to use services.
1% of the people pay, 60% watch ads, 39% are crusaders who conveniently are morally obligated to not pay or compensate for anything (but have their costs covered by the other two groups, who complain about ads/costs but somehow are blind to the dead weight they are dragging around).
Worst of all is that it's impossible to have an honest conversation about it, because they people who haven't seen an ad or paid for a movie in 20 years go absolutely insane when called out. YouTube creators talk about it in private, but they would never dare say anything on their channel. Ad blocking is practically a religion.
You can't use Kagi or Nebula without paying, so I don't really see how they're suffering from the free riders you keep insisting are some horrible epidemic. Almost by definition, if you're using Kagi or Nebula, you're already a conversion...are you saying a 1% conversion from advertising?
I have a collection of four hundred blu-rays and thousands of CDs. I pay for Netflix and Hulu and Amazon Prime, I pay for YouTube Premium and YouTube Music, and I don't use an ad blocker. I don't know if that falls into your criteria of "someone who can discuss this honestly", and of course I don't really have a means of "proving" this to you, but if you can assume I'm being truthful I don't think I'm speaking out of my ass here.
If people refuse to pay, refuse to view ads, and are happy to let the suckers like you (and me) carry the cost, then no one should be complaining about the impenetrable giants who reign over us. The internet can reap what it sowed. I'm burning 3GB a month loading ads on my phone so others can view ad free? Maybe I should petition the IRS to let me write it off as a charitable donation.
The story of Vid.me is excellent here, because they were actually on track to dethrone youtube. The hype was real and they genuinely were getting positive traction. Did youtube fight back? Did google sound the alarm? Was there any effort to keep creators on yt? No, no, and no. Why?
Because Google knew Vid.me would run out of runway, and that at heart, the users were just there for the free lunch. Vid.me went bankrupt and never made even a dollar from their "fans".
It's generally not possible to have an honest conversation about something when one side sees the other's honest response as "going absolutely insane" :-)