Probably has a lot to do with Arrington taking a month off then coming back and not keeping 'good' posts coming. I've noticed that they seem to be posting less articles - especially on weekends.
I agree that the concept of free web services is dangerous. As a web developer, I have invested years and lots of my own money developing an online content publishing platform aimed at the masses. I intend to charge customers an annual fee to use it. The idea of giving it away for free has been considered but I decided that charging for it was a better option. One company that springs to mind is SmugMug.com - these guys have established a very successful business in a market dominated by a free service - flickr.com . Many people would think that an online photo sharing site where you have to pay is a stupid idea - but SmugMug.com has over 450,000 users - and none of them are using the service for free. Go figure!