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From my experience I feel most modelers, including myself, create free lanced railroads because they have more freedom to create their "ideal" railroad. You have so much freedom to create your own world, your own scenery, your own paint schemes, operate in your favorite era, etc., etc. I and many modelers like to call ourselves "prototype free lancers" meaning that we take all our modeling cues from the prototype and simply tweake them a bit to fit our fictional railroad. An excellent example of such a railroad I think would be the Allen McClelland's Virginian & Ohio. He operates a fictional railroad that operates and looks quite a bit like the old B&O or C&O Railroads.
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