I think the free domains attract the wrong type of webmaster, tbh. It seems like a good idea but the spammers take advantage and spoil it for everyone else. It would be good it the quality was there but there's such a lot of garbage including iframes, redirects and just plain spamverts loaded with ads and no content that it's not worth it any more.
It's a case of "You get what you pay for" now, and I'm sure the proxy users don't appreciate it either, I'm one and I refuse to use .cc or .tk now because I expect crap proxies after what I've used so far. I don't know about sys admins either but if I were one then I would ban all free domains anyway without exception or question, just block the lot by default. There's not many proper or useful sites on them so no point in allowing them, they've got a bad name now, imho, and that'll be hard to shake. Bloody spammers!
I don't allow free domains on my list either, never have and never will, and if everyone stops listing them then maybe, just maybe, the tide will turn. Lets bring back the quality and ditch the quantity, it's the end users that pay the bills at the end of the day and they're the important ones I believe.
But hey, what do I know...