http://www.chatserve.com/palhistory.htm
i hope we don't see the downfall of SL because of the inherent SL software/server problems leading to the attacks, or the attacks themselves. i was a Palace pioneer and back then it was the SL of its day, a "ooh we can walk around and talk with pictures!" sort of thing. then it got traded from company to company, until the final company went out of business. free users were allowed, and very often servers would get scripted to death, Palaces would get trolled/griefed out of existence (even with the God's ability to track IPs). i'd hate to see that happen to SL, which i've just found and started enjoying!!
honestly, regarding free accounts vs. paid accounts vs. verified accounts ... this latest goo attack smacks of someone's rich, bored child sitting around with their 3rd or 4th fully paid alt, they're bored and very smart, they're doing it "because it's there."
free users may be annoying, but they tend to be desparate for the party to continue, you know?