We've had a system where people could give it away for a long, long time, albeit before the Internet people generally charged for the production costs.

Publishers also frequently give parts of it away for free. When we see a trailer for a movie, that's getting part of it for free.

The line in the sand isn't nearly as clear as the OP suggests. :p

(That said, I do see his point, I just think he's going overboard. Time was, the "noble calling" of the writer meant the writer suffered true and deep financial hardship.)