Most of the time, it wasn't other people. People were paying for their own hosting for their own purposes, much like how I order lunch.
No, you miss the point. Because of those who were paying their own hosting the rest was able to have free and awesome stuff. The paying out of pocket to show your own stuff to other people was the act of funding a venture. Some ended up turning these into profitable businesses.
Anyway, it doesn't matter. The gist is, someone else than the user paid for the experience without immediate expectation for profit from side channels and that's how we had free and awesome things.