"Family and friends...all want a FREE copy": You've noticed, eh? It was ever thus, and I suspect every author has faced it at some point.
Agree that also that "for all but a few, writing is a hobby or public service." By my lights that's fine, as long as it's what they want and go into it with their eyes open. It can be extremely rewarding to self-publish, say, a family memoir that your descendants will cherish for generations.
What's not fine is that an ever-growing number of marketers seem willing to take advantage of writers by misleading them about their chances for success. I feel for writers who know little enough of the industry to believe some of the promises.