Yes, you allow freebies but not everyone is going to give them. I'm a softie but everyone isn't and if most people in the swap refuse to give freebies then you could end up with the situation I described. Again, worst-case scenario.
And a lot of people would opt out for donated seed. People consider that a place where people go to dump seed no one wants. This is why some people don't want to take seed that someone got from another swap. They figure it's been passed around forever because nobody wanted it.