The very nature of a freemium system is that basic functionality must be free.

Yes I think we all agree on that. Where we may disagree is on the how to define "basic functionality".

what we discover under this system is that Steem never really worked in the first place

Certainly true to some extent, though the magnitude is less clear. IMO it is better to discover and work on improving any mismatch between expectations or desires on the one hand and reality on the other than to continue to play make believe.

BTW, you may find this interesting on cost trends:

https://steemit.com/steem/@holger80/how-strong-are-the-rc-costs-changing