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It's because they don't want to give out free food (but want to make it seem like they do want to give out free food), so they will make it available only when people are less likely to go for it.
Free food? Since when is the hotel food free?
Here you always have to pay for it even if you usually do it when booking
In the US several hotels will offer a "continental breakfast" included with the stay. I guess you could argue that it's not really free, considering it's factored into your stay at the hotel, but there is technically not a separate charge for it and it's considered an "amenity". I know that this is not necessarily common in other places, so I thought I would mention in case you were not aware.
I'd say you're correct except now it's more "used to offer". In Europe it's usually included and it's a good spread, in the US it was a decent spread, then cereal and processed muffins, and now it's.... A Starbucks Togo you have to pay for