When we talk of freemium, our mental model is that we provide a limited functionality free of cost to a large number of users and provide premium features on paid basis that only a few people (will) buy. In this model, the quality is a non-negotiable factor - free doesn't mean poor quality.
However, what if there was a business case for delivering all the functionality to everyone but differentiate based on quality? While the idea might sound strange, if not entirely unacceptable, you might be surprised to find that we already consume several such services (check out the deck!).
In this talk, I explored this subject further and would like to hear back from you on this idea further - does it make sense, is there a business case with this thinking, and so on?