If you are going to create an internet-based business that will support more than a few people (both users and employees with their families) you need money. Lots of it.
The user side is simple: As the user base grows your infrastructure requirements grow as well. And, at certain milestones these needs grow in large capex bursts. Flexible services such as AWS have made scaling far cheaper, more linear and less expensive, but it it still very expensive once you cross certain business-dependent thresholds. Hardware is hardware, whether you own it or not.
Of course, the team will scale based on other parameters. More engineers, more designers, customer service, accounting, operations, whatever. More people. Not working for peanuts of feel good hippie thoughts but for money. They need it to live, rent or buy a place to live, feed themselves and their families, save, invest, have fun, etc.
Given that internet culture quickly --from the very early days-- levitated to free and add-supported free most internet users only want to pay for their connectivity. Nobody wants to pay for anything on the internet. That's just a fact. Pick any service, say LinkeIn, far more free users than paid users. It's like that across the board.
Hell, it's even like that in mobile. Unless you get lucky it's nearly impossible to make money with paid apps. Make them free and then sell them something from within the app or support it with ads.
I stand by my original sentiment: The internet would collapse tomorrow if advertising was banned. That doesn't mean I prefer it that way. I am simply reflecting reality.
