I have to pay for a new Iphoto download - no update showing. Is that correct?
No idea - totally depends on details you do not give
If you do not meet the minimum requirements then you can not use the feature - just like the rest of life - if you are not this tall you can not get on the Disneyland ride -- requirements and setup instructions are here - http://www.apple.com/icloud/setup/
So is this just another revenue stream for appleof course - exactly like the new Ford is another revenue stream for Ford, etc, etc, etc, etc - the reason Apple hires people and pays them to implement new features is to create moe revenue - amazed that you did not know that (same for Microsoft, Adobe, and Ace Hardware - and your local hamburger stand)
What eactly did you think the purpose of new features was?