Obviously, I saw a different niche of Usenet, but I ran my own personal INN with few users and never carried binaries. None of the relevant German news servers carried binaries, and for a time they thrived.
I had slight hope for a renaissance of decentralized Usenet service (instead of the big two: T-Online and Uni Berlin), when a very influential netizen posted a "how to run your INN, and you get a feed from me" on his blog and dozens of small, personal INNs sprang up. Ultimately it did nothing.
Of course, there was another niche, Hamster (http://www.tglsoft.de/freeware_hamster.html), that did a lot for Usenet.
I still don't believe that binaries were very relevant to the demise of non-binary Usenet. Both offers were very distinct, AFAIR.
Either you did "discussion Usenet" which didn't make money, and never really did much, then the egress of users killed you over time, because your employer couldn't see a reason to keep your news server running. Many servers mostly ran under the radar for the last years, with admins almost trying to hide that they had this little thing besides their mail server and other duties.
Or you did binary Usenet, then you made money, but were in a totally different line of business: selling pirated music and software to your customers.
Again, all observations mostly limited to de.*, which was pretty big.