It seems to me that Weebly has a long term strategy. They are trying to build a good user base. As they improve their service those non-technical users will learn how to build more complex websites and eventually some applications. It is sort of like starting a Kinder_garden with the goals of adding a Grade each year so your students won't have to look for another school.

That doesn't have anything to do with them making money. I don't think their monetization path is very important because best-in-breed web applications don't have a problem getting acquired.

If Weebly was a Web 1.0 company, the founders would be billionaires already.

"If Weebly was a Web 1.0 company, the founders would be billionaires already."

Poor logic.

Very poor logic. Logic doesn't prevail at Y-Combinator.