I don't think that's quite the case. It is a valuable player, but avast! and AVG do provide full behavior blocker in free version and that's very hard to beat. Plus, the uncertainty with the license of free version (it says 365 days with no mention of extensions) and required creation of Kaspersky account makes it a good option, but not quite something that will massively disrupt the market. Imo.
True. Even though the cloud will make static detections reach farther than other free AVs, the lack of System Watcher makes it just incomplete and weak for use alone.
Two things will happen. One, the ignorant folks or amateurs will believe in the name of Kaspersky, let go off extra features like Privacy protection (Web data collection, webcam protection) ... as they've mentioned on the downloads page in comparison table. The lack of BB, AppControl is not mentioned at all in the comparison, an incomplete illustration of differences for those wanting to go for it, except if they care to research. However, same is the way KAV is compared against KIS by them. Only difference being KAV has SW that Kaspersky Free doesn't.
Two, some pros will Complete their layered setup with Kaspersky Free, if they only lacked a nice definitions engine.
Since they've not mentioned about any limitations of the license, this can be a case similar to some other free AVs that offer completely free versions with an annual renewal (again free). There's nothing to unlock in Kaspersky Free after a year except that they ask to upgrade to KAV.