Why get a car or a bike when you can walk?
I do not currently own a car because the benefits do not outweigh the costs for me. I take the train or pay friends fuel + hourly rate to transport me around when required. As a relatively young male in the UK, insurance costs run at £3000 per year. That pays for a very large amount of taxi journeys.
I would very much enjoy driving a car, and technically I could make the payments and not have to loan money. But then, that takes me further away from financial freedom. It reduces the interest I accrue in my savings account. It reduces the amount of time I could survive comfortably if my income dried up tomorrow.
Why buy and wear underwear when you can go commando?
Why buy a shaver when you can just grow a beard?
Why buy food when you can live in the wilderness off the land?
For the first two questions.. underwear runs at probably sub £20 per year. It's also not obtainable for free, as coffee isn't. Shavers are even cheaper - disposable razors run at probably £2 for a year.
Living in the wilderness has an opportunity cost of not taking part in society. To be sure, if I discovered food + rent + other essential bills actually cost me more than any job I could find was providing, I would certainly give it a shot.
There's a price to being civilized, and a price for convenience, and a price for fun.
It appears that you're cramming virtually all money into being civilized, and a hint of convenience.
Now I don't know where you live or how much you make... but I don't make all that particularly much and live in an apartment, but I can still buy clothes, food, occasionally splurge on eating out, and guess what... still have money to play Skyrim and also browse the internet. And still be saving up enough money for a trip to my brother's destination wedding next year.
It's called balance. One CAN actually do all these things without going in the hole if you're smart about it. If I wanted to spend absolutely nothing except on the essentials, I'd buy a gun, a hunting knife, a pile of ammo, and go live in the forest for the rest of my life.
I do not budget to avoid "going into the hole", if by that you mean into debt. I am debt free, at least in the sense that my assets are greater than my liabilities (I do have student loan debt, but it is hedged.)
But what about future obligations? If I fell out of university now, I'd be able to keep myself going for about a few months until I had to borrow additional money.
Every £10 I spend now is another night of accommodation.
At the end of the day, all expenditures warrant a cost-benefit analysis, if we speak rationally. Internet access provides more to me in terms of future earnings potential than does playing Skyrim. In addition, if I wish to play Skyrim, I can very easily and without threat of punishment obtain the game for free. It would be difficult to do the same for Internet access.