It is difficult to talk about what is good or bad about the SL economy without defining a baseline of what a healthy SL economy should look like.
I think it is frequently discussed in terms of whether a small percentage of the population who are merchants are generating revenue. That's nothing that interests me, since I'm not a merchant. (Though I am absolutely happy for anyone who makes money through their creations or services.)
It could also be considered in terms of whether customers are getting value for their expenditures, and whether there are enough things on which customers want to spend their SL budget.
Marketplace is challenging to use, in terms of searching or browsing for things one wants. There may be thousands tens of thousands of products in any category, variety and diversity of products is always lacking. Truly evaluating available products requires a decent knowledge of the complex/quirky technical underpinnings of Second Life, which most users find daunting. Buying things in Second Life is very much a frustrating, time-consuming, perilous process.
If one spends a significant amount of time and money shopping, and comes up with enough disappointing products, it is easy to be discouraged from participating.
To get to the question of freebies, getting a good freebie or cheapie is an encouraging, positive experience that is a good thing for Second Life, whether it encourages someone with the budget to spend to go shopping, or whether it encourages someone with no money to spend to continue to participate in Second Life.
Having a population in Second Life is important, whether or not a certain segment is spending money. Ultimately, the heart of the Second Life experience is meeting and interacting with others. If Second Life is desolate, there's no reason for users with money to spend to actually stick around and spend that money.
Here is the philosophical question: If you are wearing the hottest mesh avatar and sexiest clothes that money can buy, but no one is around to see you, are you actually pretty?