It's probably not seen as important as the marketplace by some folks, but it shouldn't be discredited. Besides some of us actually do like to make things just for the heck of it...

What I'd like to see regarding Free Stuff:

1. Thumbnail hosting. It's understandable that the downloadable files vary too much and probably take up bandwidth, but it would be nice to at least have the thumbnail hosted at Renderosity. 10KB, 200x200px max shouldn't cause that much overhead.

2. Comments and scoring. This would be a thing that the artist can turn on as with images in the gallery. People can then see what others think (is it worth downloading? -- might be an issue for the dialup users or those with nearly full drives), the item maker would get some feedback. Sometimes a pat on the back is all it takes to keep one going. Other times, a hard critique might be all it takes to get one to make improvements. Maybe even allow sorting based on items that are rated? Consistent good ratings might even encourage freebie makers to give the marketplace a shot.

3. A Free Stuff forum. There would be rules against ill-gotten goods (as applies in general already). But if someone knows where an artist is legitimately providing free content not specific to an application, it could be used to inform everyone. Also if an artist has released a new freebie, they could announce it without bothering or disrupting the marketplace or 3D modeling forums. (So not to be seen competing directly with sellers, and modelers usually tend to be more interested in technical details and process than end result item.) Also this would be the place to make requests for pro-bono work. (Not that they'd have much luck, but at least it would be the appropriate venue.)

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Barbequed Pixels?

Your friendly neighborhood Wings3D nut.
Also feel free to browse my freebies at ShareCG.
There might be something worth downloading.