If Security companies don't have paid products that people buy, then there may not be any money for them to even.. Well survive? You need food/drink, shelter (a house, which will have bills attached), the staff at these companies most likely have families to feed as well. There's a difference between a hobby with a sidejob to earn money and then dedicating time and effort and working on Security as a main job (staff at comapanies like ESET, Emsisoft etc).
While yes I do agree that some free applications/services may provide a fair level of protection, whereas some people (most, actually) will want that bigger level of protection (or should I say "protection taken to a higher level").
For example, a single parent wants to protect their children on the internet.
What does she do? Does she download a free application/product off a website? No. She doesn't. She most likely goes to a shop and get's a DVD with the installation on it, instead of going to the website altogether. Yes, believe it or not, I see A LOT of people buying the DVD's for the installation, check the stores in UK (not sure about other countries). No offense, but even if she did go to the website and saw the "Free version" box/tile/label, I doubt she would know how to correctly set it up for the maximum protection, prior to even having no experience with Software but just using it here and there for Word Processing for her work (Microsoft Office) and wanting to put Security for her children, who neither know much about it all, or none due to starting using the computer properly and not being aware at how viruses can really affect them, but their information/ID and personal files also.
Another example could be a School who are starting out. They launch their school and they have what? 3,200 students who have applied (and were thankfully accepted

). After the Summer, when they all join, one of the I.T admins decides to show the user log to a guest/visitor to the school when he accidentally discovers a huge list/log of (well, for the rules on this website, let's say "inapropriate" websites or "unsuitable" for the age group of the children, being the age of 13 - 16) ... He quickly panicks, the guest would be shocked so he finds a way to hide it and moves on to the next feature. After the visitor leaves, he needs to find a way to stop this from happening. Yes, being a I.T admin at a school he should know how to use a free application to help him, however being a school they really need the maximum security therefore he goes out and buys a security suite with also a custom filtering tool where he can also "blacklist" certain URL/websites in a category and log all users accounts who try to access it (so they are aware who it is trying to use those services/websites and view the content).
Carrying on about the schools, a good Antivirus/TS suite is a necessary requirement due to the kids taking a interest in I.T. As far as im aware, schools all have the computers linked up to a server. If a kid with I.T as a hobby outside of school gets his hands on the computer and finds a backdoor solution to bypassing the free Antivirus with a day0 sample he could have even written himself (it's possible), he could easily bypass it and do anything he likes. He could delete and remove sensetive files the school needs (or if he's really mean, he could do a more "secure" file deletion. He could not only delete the file, but make another app (or use a existing one, having control over the system being able to install apps), to overwrite the file data (let's say even 30 times for maximum security of the file being gone).
HOWEVER, If the school put their hands in their pockets and pulled out some cash, and got a proper TS suite, or even better, contacted a vendor for a customised version to suite their school, then they could avoid all these problems. They could also disable use of Command Prompt, hide the disks with the sensetive information, have a proper IP/website blocking filter with reports and proper instant popup reports, zero-day malware protection, and a behaviour blcoker to avoid personally written apps never seen before by the vendors to catch them out with the behaviour analysis... In fact, if they were really serious, they could lock up things like Windows repair with the boot, lock up the BIOS (and stop booting of USBs/Disks without a password), deny permission to installing apps without the admins permission... That's even better. They have all that sorted, and more problems solved with the custom made Security suite (which is paid).
Then there could be issues to people in this kind of group (users of MalwareTips, I will only do one example for this*):
Let's say a user with a
high reputation on this website was testing Malware Packs and the free Antivirus didn't have the signature in their database yet, but the protection wasn't as good as on paid and the behaviour blocker protection was limited (just as a example, but I don't usually see that limit on behaviour blockers with free versions... But anyway, back to the example), then they accidentally executed the file. Or, even better, their little brother executed the file (say they were still in College and lived with their parents still), then where will they be?
Zero-day malware running, could be a backdoor or ransomware, or anything they could be not expecting. However, if they then had bought the paid copy of the Anti-malware/Internet Security, for backdoors they would be aware of the connections when checked/alerts and the Heuristics could have fished out the file with a fishing rod instantly.
Then there could be a average PC user who did know what he was doing and had very, very important files only HE could ever need to see hidden on his computer. He was planning on destroying the hard drive with a lot of techniques combined into one to make sure the files really were never recovered. He would start by smashing it with a hammer, throwing it around for a bit, setting it on fire, bloating it with water (I don't know, that came into my head), driving over it with a car

, going for some fun rockclimbing (throwing it off) then using a zipwire to fly down and collect the pieces)... Skydiving and throwing it out. Who knows what he could do...
OH NO! The guy got hacked whilst he was dreaming of what he would do with the hard drive. Damn. They
stole the files (well a copy). If he had the
TOP NOTCH paid security and
Anti-hacking technology (Firewalls,...) then possibly, just maybe this could have been avoided.
Then there are free tools which help in some of the situations but for the BEST protection, you'll need to spill. They always make you sqeel with cash, lol. Feel free to have your opinions, I am not taking that away but my opinion is they always do better wth paid. Look at
@OpenSecLabs signature, there is a link to what he feels is the truh about Security and I also agree with some of his thoughts etc about it.
Sorry for this very, very, very long post. I was bored, I was in the mood, so I decided to write it...