A custom designed website is not for everyone. A person would want a custom designed website for the same reasons you might buy an expensive suit for business meetings or for the same reasons you might work hard to make your office clean and presentable, because you want to present a professional, successful business image.
Template based websites always tend to look like templates and are often rough around the edges. For a small business just starting out, or when marketing budgets are extremely tight or nonexistent, one of these free or low cost websites is probably the best solution.
For the growing business looking to make a good impression on potential customers, a custom designed website is among the best, and certainly among the cheapest, marketing investments you can make.