I'd say you're wrong. My business is just me, and I offer a free plan to let folks kick the tires. My biggest competitors charge nothing for their services, so I can't compete if I don't offer a free plan.

I don't think you could produce data that shows what you're suggesting, and in fact I think the reality is that the opposite is quite true. Any business that offers trials or free options is vulnerable to abuse, and any amount of abuse will eventually begin to eat into business resources. And business who do charge for their products don't have the "growth and engagement" money to burn on bad actors.