Hehehe. There's so much of it because there's so much of it.

It's all stuff that was shot for porn magazines and then scanned in when the whole adult site thing started. It was cheap because it was already bought and paid for a few times. The reason the quality sucks is because most of it was scanned when scanners were nowhere near up to today's standards. Sponsors use it for filler (and sometimes primary content) because it's cheap, of course. And they give it out as free content because it lets them say that they give free content and at the same time they aren't giving out anything valuable. It's all economics, hehe.