alt Hacker NewsI've heard dozens of people say this (and I've even said it myself) but I don't think it actually holds water. People will pay for things if those things don't suck, and it's not even hard to find examples of that (even with Google products no less!).
For search, Kagi has had a growing fanbase for a couple years now, but let's take things that have been easy to get for free for decades: Movies.
People have been, with relatively impunity, able to torrent movies for free for a very long time. It's not hard, and the only way you're paying for it is ads for hot MILFs in your area. And yet, despite this having always been an option, somehow Netflix and Hulu and Disney+ and HBO Max have managed to make fairly successful businesses selling movies that could have been pirated.
I could get YouTube as ad-free with an ad blocker, but I pay for YouTube Premium. I could get all my music for free with Redacted, but I use YouTube music, or I buy CDs. I could torrent video games but I just buy them off Steam or GOG.
This isn't new either; there were thousands of free forums on the internet in the late 90's, but yet people still bought accounts on Something Awful for quite awhile (and indeed still buy accounts, but with much lower numbers).
We can certainly argue about how much value these companies are providing, and we can argue about how it's annoying how there's a million different streaming services now and how that's really irritating, but my point stands: people do pay for things on the internet.
We don't have to accept that companies need to sell all our data. We don't have to accept being bombarded with ads. We don't have to accept that people won't pay to use services.
The harsh reality is that conversion from "free" to paid is on the order of 1%. This is true for everything from patreon, to wikipedia, to kagi, to nebula, to home mailers for charity.
1% of the people pay, 60% watch ads, 39% are crusaders who conveniently are morally obligated to not pay or compensate for anything (but have their costs covered by the other two groups, who complain about ads/costs but somehow are blind to the dead weight they are dragging around).
Worst of all is that it's impossible to have an honest conversation about it, because they people who haven't seen an ad or paid for a movie in 20 years go absolutely insane when called out. YouTube creators talk about it in private, but they would never dare say anything on their channel. Ad blocking is practically a religion.