So I have to pay to use my phone's extra space after I've already paid £100 for the space, the £60 per month for a contract.
That software is from a third-party developer, who also needs to make a living. That third-party developer did not receive any of the money you paid to Apple for the phone, or what you pay per month to your network provider.
As already stated, the iPhone does not have a Disk Mode (for security reasons) so this developer has spent time, money and effort devising a solution. Why should he do this for free? Do you work for free?
Then once I have paid for the privilege of storing files on my iPhone I can only do it when specific applications are installed on specific computers or slowly over wifi.
Yes. If you want to use the iPhone for a purpose that it was not designed to be used for, then you have to accept the limitations of using it in such a way.
If using the iPhone for File Transfer/Storage was so important to you, maybe you should've done some research before parting with your money, to check that it does what you want it to.