With a paid VPN service, part of the attraction is that you're one of quite a few users on any given server at any given time.
Edit: If your only goal is to get past stuff that's blocked, that's different. Though if you get a VPS, you're still using an IP in a range that's likely to be blocked if a service doesn't want VPN traffic.
That's the correct model for onboarding with free services, not offering a free service tier with restricted speeds.
It's simply stupid as a user to forward all of your traffic to another company for free. Thus any VPN that offers such a service does not believe in fully educating its users of the dangers involved in using a VPN, and are operating at an ethical boundary.
You surely can't be suggesting that this didn't come up in meetings, and that the opportunity cost wasn't determined and taken into account when offering this trial service.
The painlessness of the service, along with the encouragement to generate as many new account numbers as needed while testing, along with allowing full feature access without throttling, meant that I generated two weeks' worth of trials before finally deciding Mullvad was right for me.
But now I know they are right for me, and as I said in an earlier post I am now a customer for life. As long as nothing changes, that will remain so, and I will, as I am now, frequently proselytize their service and encourage others to try them out for free. I'd say they calculated the opportunity cost correctly.
You can easily pay an ISP $50/mo for broadband, so why should you trust a paid VPN that will handle all your traffic for only $5-8/mo on top? Is the difference all infrastructural costs? What about those cheap $3/mo VPNs? Where do you draw the line?
I think it is more that the costs of running an ISP are much higher, you do not only need peering, but the networks including the last mile need to be put in the ground and maintained. Plus, in to some extend, people in areas with high-density populations subsidize expansion into lower-density areas.
The VPN market is really different. In principle anyone could start a VPN using just a VPS (it wouldn't be the best, but many VPNs are terrible anyway).
At least with a paid service I might think that my money ... could be enough to sustain the company. At least it could be.
I would assume a free service would have to be selling your information just as a matter of policy / economics.