It doesn't say "unlimited speed" nor "unlimited file size", and it clearly states that once a site gets big enough they put in in-line advertising (similar to what you see on the main FWS website). Personally I find inline advertising far more intrusive than banner or text ads, although you can disable them by disabling javascript. Inline advertising companies generally don't allow other advertising and won't accept sites that don't contain enough B/W, so their policy is actually to appease the inline ad company.
Of course there are limits, but so to is there a limit as to how fast a website can possibly "grow"; even if it goes "viral" like wikipedia. The fact is, as a source of income for the hosting company, and that income increases with website size, it is in their best interests to keep the website functioning no matter how "big" it gets. If you're going to have advertising on free websites, the last thing you would ever want to do as a host is limit bandwidth because essentially you're tossing money down the toilet if the ads don't run.
With the file-size a simple 2MB limit forces users to do some size optimization towards their images, etc, which really they should do anyway but many don't. Without this limit you get free sites that can use bitmap-sized images, etc, and eat up B/W unnecessarily. [offtopic] Something I've said before is the best colour quantization tool I've ever found is xPadie. I actually can't belive it's such an unkown tool knowing how much better it is than anything else at what it does. Direct link to the most recent version (2002) that I know about is:
http://www.anime.net/~sasami/ura/xpadiepro13.zip And you want to know what? It's open-source, so anyone could have copied the code into photoshop, or any other program, or made plugin. The source isn't in that zip file, but i can upload the source to a previous version if you want it. [/offtopic]
We can agree to disagree.