The world is not black and white, and paid service can easily coexist with subsidized service. There are many examples of “it costs you $XX but ask us if you need it badly” policies. The best varieties probably do some degree of vetting (because otherwise would slightly defeat the point or make it impractical, especially while LLMs are cheap enough that anyone can use one to write a convincing tear-jerker) and have objective criteria.
I haven’t thought enough to say whether it makes sense for specific cases like IP address allocation, though.