Hey now! I'm probably a member of that so called "entitlement generation"! I had no problem sucking it up and paying for a premium membership. I'm a graduate student that has been basically going to a college of some form now for 8 years. When it comes to figuring out what whether you can afford/should pay for various things, its always good to put them in perspective.
For instance, soon after graduating from undergrad I was asked to make a commitment of $1000 over 3 years. The thing that got me is I am a Diet Coke addict and the person got me on the fact that for less than a Coke a day I could make the monthly payments. I'll use the same example here...if you eat out twice a week and order a soft drink or some other drink like ice tea, you are going to pay more for that then for the premium membership.
Anyway, I have to agree with most everyone else, this is a free game, but there is the option to pay a tad extra and get some extra benefits. I did originally, because there were some Member Only caches within a mile of my apartment. I figured for $3 I should be able to get those in a month. I did get them, but they were also very difficult caches that I could not have gotten as a newbie without the help of the cache owner (JoGPS hides some very difficult caches sometimes....).
Since then I've come to find the real benefits of a being a premium member...pocket queries, using various mapping features, etc. Anyway, I think that there are a lot of nice benefits for being a premium member and there is really no reason to complain about those benefits if you are a nonpaying member. It doesn't cost that much more to pay the $3 or $30. Finally, to answer the orignal post...I think its a bad idea to delete the logs of the person is a premium member and you will just make enemies. I've only hidden one cache and its open to everyone. I think it would be childish to block me from loggint the cache because I wanted to pay a few extra dollars a month to get other extras.