With many products the free version is a marketing hook to establish a supplier contact with you. The free product is often deficient in important respects, and this is then pointed out to you in the hope of enticing (or worrying) you into buying the paid version.
The avast! model has traditionally appeared somewhat different. The free product is competent and quite full featured, and certainly in avast 4 was openly advertised as such. The corporate goal was nominally to prevent the spread of malware by ensuring that free protection was available to all. The paid version had more features that it was still obviously hoped would attract you.
A perhaps unexpected result of this approach was that many users (myself included) would at times upgrade to the paid version simply to give avast some money in return for the years of free service.
The avast! free product remains very full featured, however the avast! marketing material seems now (personal opinion only) to be leaning toward suggesting that it isn’t adequate for many user needs. (Without a firewall it plainly isn’t)