This is a good point in general and about the PC in particular, but it is totally wrong about Netscape.

The complement of a web browser isn't the web servers, it's the OS--and vice versa. So, Netscape tries to commoditize the OS, and MS commoditized and destroyed the browser market, and then nearly themselves with antitrust.

Also, Netscape was initially free in the early days, but had become a product which cost money until IE came out and was free. The plan was not "free browser". (Read Ben Horowitz's book...)