That is a good point...

Yahoo/Geocities is apparently trying to keep the free services around as an enticement to draw in more people - but then again, they've probably hit a critical mass wherein they can keep going on ad revenues and the like, and they do offer quite a variety of 'paid' enhancements (increased memory space, a couple of the gadgets you can get for your page, etc.).

More power to Photoloft if they can make it work, but I'll agree - normally, reducing your services and then increasing your fees doesn't make for good growth unless you've got good PR guys working for you.

M