Yeah, my thing is, I don't so much care about free coffee in and of itself. I can afford coffee. But it's the signal that it sends. To me, eliminating free coffee (and sodas, etc., per the @sgblank essay that @compiler-guy linked to) communicates that one or both of two things is true:

1. We're in really dire financial straits and you should all probably start looking for an exit while you can.

2. The company doesn't give a shit about the morale of the staff, and will therefore soon be in dire financial straits if it is not already, and you should all probably start looking for an exit while you can.

It's just a really, really bad look, IMO. As managers are so fond of saying... "it's bad optics."