From a business point of view, if you're serious about promoting a business on a website, you really need to pay for your own domain, hosting, and generally project that you are a competent business.
However, there seems to be an awfully large market for free hosting services.
I can see the benefits from a SEO point of view - lots of free sites offering free links.
And I can see if being useful for kids who want to set up a website but don't have a card to pay for services.
But is there any other real market in free hosting? Which market does it really focus on and server, or are there clear demographical sectors within free hosting customers?