Will "free" destroy your business or save it?

Chris and I recently published a podcast about the effect of "freeconomics" on business. If you're a visual person, you might like to watch this as a slide presentation ...

Web 2.0 takes publishing out of the hands of a few and puts it in the hands of the many. Google is a free search engine; Wikipedia is a free encyclopedia; YouTube lets you be a movie producer; Blogger gives you your own newspaper column; iTunes gives you your own radio station; and Flickr lets you be a photographer. And all of these services are free. Is everything that's any good now free, and is everything that's free any good? More importantly, from a business perspective, will free destroy your business - or can you use it to boost your business?