Being an idealist is fine, but being a dick is not. This article took on some personal schadenfreude after I read this line.
We would all like to have a model where users don't get charged money, and yet are not the product. But I haven't seen a model that works to date. In some cases, I don't mind my personal date getting sold; in other cases I pay money because the service is valuable. But I certainly make backups since I don't assume that even when I pay $$$, that the company might not go poof in the night....
Sure you have. Amazon grew without giving stuff away for free. Customers paid (just below market rate) from day 1. This demonstrated the -convenience- of ecommerce. It had revenues from the first sale. Yes, it spent mountains of VC money on marketing and development, but -not- on just buying stuff for you so you think it'll be free forever.
Uber is the same, although it's less clear that users will pay gor what a ride really costs. (And their margin makes it attractive for competition)
In both cases though there us revenue from customers from day 1. You can wind prices up. It's really hard to "go from free to paid".