I use both commercial software and freeware. If I can't pay for let's say PS then I don't use it. Instead I was trying several freeware programs. I can't get used to the Gimp (freeware/open source). Once I found PSP I found it good enough to register it.
I don't think that by definition commercial software is better than freeware. These days we also have commercial freeware like WinAmp. WinAmp is a good product.
There is also some very good non-commercial freeware like the software developed by AnalogX. Another example of good non-commercial freeware is CoolPlayer. That product is now open source.
We all can give examples of freeware that is half finished and will never be completed.
I did release freeware in the past for CP/M and MS-DOS.
Recently I made some plugins for free (WBAmp and DXPlayer) and I am working on some new versions for the latest DX, OB and WB.
Another thing I am doing is a media-player for SD. We don't know much about its future yet, but we will see about that.
What bugs me is that some people think all software should be free. I am working for an independed software house (no, not SD) on a commercial game for several years now. We have a large team of programmers (user interface, AI, games engine, in-house utilities), graphics artists (2D and 3D and desktop publishing), sound technicians, marketeers, project leader, management, etc. Not only the program, but also the packaging, T-shirts, posters, web site and so on need to be done by people. It needs to be distributed, ads are needed and it needs to be sold. That costs money and people are dependent from it. They all love their job. I _know_ I will be mad when our game is on a warez site. In that case they are _stealing_ my daily bread. And oh, I am not rich, don't own a car (don't need one in Amsterdam) and don't want one.