Having access to the entire internet sounds a whole lot more useful than access to a subset.
The second one isn't and never has been a realistic option.
Would be interesting to see what people preferred if both had happened.
Aircel is one, I forgot the other.
Telecoms aren't giving out free internet access out of the goodness of their heart.
IIRC facebook wasn't even paying for the data in Free Basics (this may have changed?). They were spearheading/funding a marketing campaign, but the actual service was funded by telecom operators on the business model that a large enough fraction of people will switch to a paid plan. Facebook didn't even need to exist in this scheme (but nevertheless painted it as them being charitable)