Free database tend to be low quality/incomplete. Or even worse, full of internet games and other garbage. If you're a serious player needing to prepare for an opponent before a game at a tournament by looking up their games to see what they play, you don't want to have data missing, or data you can't trust.
I agree theres some decent freely available stuff that's satisfactory but it's just nowhere near the calibre of something like chessbase.
I'd agree that for playing engines you can probably get by - Fritz is far weaker than the best freely available engines out there.
I don't understand why people spend good money for chess programs like Fritz and so forth when there are good chess gui's available for free--SCID vs PC for example. If you need databases there are plenty available on the internet also for free. People must have lots of money to throw around even in this day and age of recession, depression and obsession.