The differences between free and VIP (monthly fee) don't look too ridiculous, although I'm hardly familiar with some of these features:
- 1 character slot vs. 5
- Ered Luin, Shire, Bree-Land quest packs vs. Eriador (everything, presumably?)
- 3 bags of inventory vs. 5
- 2 Gold cap vs. unlimited
- Standard login priority vs. Priority
- Limited chat, auction, mail vs. unlimited
- No rest XP
- No monster play
- Cannot spend Destiny Points
- Limited community features
- Limited crafting guilds
- 1-2 slots per trait type vs. All
Nearly everything is purchasable of course, and purchasing anything bumps you up to Premium, which splits some of the differences between Free and VIP.
The quest packs, which I assume are all side quests in an area, seems to be the biggest omission for non-VIP accounts.