I don't think you get this correctly.
Many people use Gmail is because it's stable and came with Google Account, so they sign up conveniently.
Plus, not many people still using email as their main day to day communication method these days. After all, there are many specialized tools out there to pick (For example, some people may use Slack for work, and Facebook for friends etc).
So, I think it's not because $50/year is expensive, rather, it's because many people don't care anymore.