I don't see a problem either. If the money is not there to pay full price for an image then no one is losing out.
Equally I don't think any plumbers, electricians or carpenters local to me go out of business when I go and work on a friend's house for free.
These people asking for free photos are NOT our friends, they're people on a forum. I just gave a good friend a framed print of one of my Doll House photos. She's a longtime friend who lives in my city and who I talk to and see often. THAT is a friend. Not someone most of us will never meet or even talk to outside this forum.
Fine Art Photography of Indiana and other places no one else photographs.