In the neighborhood around NYU we have a million places to get coffee, and many of them have free wifi. The ones that don't, like Au Bon Pain, which have better food, can't compete. And most of the free-wifi places have inferior wifi. So this morning, when I was looking for a place to work for a bit, there was no choice but to find a Starbucks, get an iced coffee, and sit down.
Not sure where they're going to go with the free wifi, I hope they add some features, and I hope they find a way to make it pay. But right now, it gives them the advantage over all the other places. Working, free wifi is a big deal.