What can you really do with 1 megabyte? Clearly nothing serious. Why suggest it's free then? Neocities provides 1GB which is actually a relevant amount.
You’re entitled to your opinion. Please check out the featured sites on homepage. All of them with the exception of some Pro sites (which get 1GB) were made with only 1MB of storage. Most users don’t even come close to reaching 1 megabyte. Not to mention you can link to external stylesheets and scripts...