The argument here isn't between people being able to make websites or not. The point is "Is Geocities as a platform worth anything?"

People can make websites themselves elsewhere.

Not nearly so easily and cheaply as they once could on Geocities.

It seems true to me that it is actually more difficult and expensive to put up a simple amateur static arbitrary page of HTML in 2013 than it was in 1999. Even ignoring idealism and nostalgia aside, there is clearly an unfilled niche here.

And they can easily make great websites at geocities.

I don't understand your objection to this service.