Regarding #3: They do offer a premium subscriber option, not all free. They currently have over 41M subscribers, an impressive number, and I am sure a lot of those will convert to a paying customers. Wix does empower their user by allowing them to do it themselves, sort of plug and play in less than 5 minutes.
The intellectual Property (IP) is the source code they have developed that allows customers to build their own site. This is the IP that they will not share with customers. Many of the sites that are developed today by other companies will not share the source code with their customer in order to hold customers hostages and continue to milk those customers for maintenance and change requests, unlike WIX, where customers can simply change the web site without having any knowledge about the source code.
I am not sure what you mean by ease of entry???
The challenge for WIX is mainly how to convert this immersive number of subscribers to premium customers? However, currently the mid market is the area of growth, and this is the area WIX is targeting. Large companies do not need WIX, they can afford to have their own developers.
Customers are feeble and the KEY CRITERION to accepting a WIX (or any other) premium service is that it has a function to export their website and move on to another service in necessary. This is the definition of being FEEBLE.
WIX has no IP since there are a TON of webuilders, always offered for free and needing no programming experience. Also, the best apps which work with WIX but are not owned by WIX...they are third party apps. OK? These app developers make their apps agnostic and they can be used by all users, not just WIX.
Ease of entry? It is ridiculously easy to develop a drag and drop website builder, and start hosting customer websites. There are at least 5 competitors which do this right now, some much better than WIX, and many others will join in the future.
This is the bottom line, and this is why many companies died in the early 2000's after raising mad money in the late nineties.