It's not bandwidth or hardware that's the issue, it's salaries. Pan Alto is an expensive place, and free sites aren't free. They require some level of monitoring, if only to avoid them turning into spam/porn havens.
Ning are keeping the large high-traffic sites like F4L and FurNation – they're already being paid for that. Instead, they're getting rid of the low-traffic, high-maintenance free sites. The serious network builders are going to be able to pay for the service, and they'll still use Ning if it's cheaper or better than the alternatives.
It's not bandwidth or hardware that's the issue, it's salaries. Pan Alto is an expensive place, and free sites aren't free. They require some level of monitoring, if only to avoid them turning into spam/porn havens.
Ning are keeping the large high-traffic sites like F4L and FurNation – they're already being paid for that. Instead, they're getting rid of the low-traffic, high-maintenance free sites. The serious network builders are going to be able to pay for the service, and they'll still use Ning if it's cheaper or better than the alternatives.