I've been kicking around an idea for a not-quite-blogging service based on WP Mu for several years now, but like you lack the tech know-how to effectively realize it on my own. As I see it, my idea could provide a service that many would find valuable - both mainstream and adult, so would need a version for each.
What kills me is that I know it
CAN be done, I just don't know how to go about doing it.
To answer your question though, I think people will continue to use freehost platforms if they have useful plugins and keep the advertisements to a minimum.