but there is also the stadium effect?
Have any of you tried to use wifi in a densely populated venue. It dies. Its called the stadium effect. Free service begets unlimited demand - which in wifi kills the service for everyone. Even tech conferences (which I attend a lot of) often have woeful wireless at the 'keynote' where a thousand people congregate in a small space.
Whether they should charge $200 or not I don't know (I suspect not) but I guarantee that 'normal everyday' free wifi hotspots would not have delivered anyway.