Yeah, the games generate more money when they go free to play but there aren't many that are doing well. League of Legends is probably having the most success with its free to play model, right? That game was built with it being a free to play game in mind though, so they did it right. The big budget MMOs that later went free to play like DDO, LOTRO, Aion and Rift are all a bit weird. I bet the people working on Project Copernicus and TES: Online looked at all these games being transitioned to weird free to play models and thought, "Fuck, what are we going to do with this traditional MMO we're developing?"
So yeah, what I mean is nobody really wants a traditional MMO anymore. Developers need to change their expectations because of this, since making these big MMOs is pretty expensive.