NCSA Mosaic and Server (that started the web) were free. The web was free and a huge percentage of it informative / labor of love free from commercial interest.
There was a lot of free/gratis but not free/libre software as well.
But also, you had to pay for a lot more things than you do today. WYSIWYG Word processors and spell checkers, for example, were expensive, and there was no free alternative (TeX was, it was superior in quality but with abysmal UI)
I would gladly return the net, and possibly the software world, back to that state. A lot of people assume that without ads the net cannot exist - but it did, it was informative, and useful.
There obviously was a mainstream tech industry that charged for its products. Often these were unaffordable to amateurs. But, since SaaS was infeasible, the software had to be shipped on physical media and run on isolated computers, which meant that it could be pirated. That got a lot of people into the industry.
There was also the hybrid model of "shareware", where you were encouraged to make copies and give to your friends - but if you liked it you were asked to mail some money to the author. Possibly the last great shareware product was the original DOOM - the demo version fit on four floppy disks, and you could mail off for the release version with more levels/weapons.