Retaining the basic free package is a smart move by Sony because there are lots of casual gamers out there like myself who game online on a very occasional basis.
And in the long run, Sony will benefit because these casual online gamers will probably at some point in time, spend some money on the PS network downloading music etc. If Sony cuts them out completely than that area of the market is severed.
With regards to the issue of paying for quality online service, I suppose it depends on the individual. I for one will not pay for something that I would only use a handful of times in any given month.
$50 isn't much by today's standards, but if i'm only going to game online a couple of hours a week, i'll much rather rough it out with an 'inferior' service that's not really as bad as some people make it out to be.
But if online gaming is something you spend a bulk of your time on, than $50 is a steal.
You could blow more than double that amount on a friday night out.
