NPC1 I'm a free user, but I'm not going to complain about getting less free stuff than I used to have. It's not my privilege to get free stuff as a free user. While I don't agree with how WN operates, it's more on a lack of communication and customer management side because I agree with you, such drastic changes don't bode well for their customer loyalty.
With that said, any argument about some pirating or plagiarizing will always be an ethics argument. I have no respect for those that leave this site because they can read for free on pirate sites.
Although I get what you're trying to say with that iPhone analogy, that isn't the best example to use because it's a physical product that's more traceable and monitored than stories on a writing platform. Unless that iPhone is being sold for £1 on Ebay or something similar, I can see why yeah, someone might buy that instead. But that's given that the ebay seller is legit. Anything that's not legit, I'm pretty sure Apple would find and likely take legal measure towards unauthorized sellers.
WN has a lot they need to fix. But free users whining to get back free stuff is something I'd never support. If the paid users are significantly affected, that's another issue (like if a coin used to cost 1 cent but now it's 2 cents). But free stuff (that free users also get) should always be taken out of that equation even for paid users. However, I hardly see any paid users complaining. It's just free ones.