Today I ran into the following issue:

1) I created a new web site using New Web site wizard
2) I selected the community web site template
3) Occasionally, when I was selecting what items to install and what not, I forget to remove blogs.
4) Web site was created, but when I try to open Blog pages it tells me then license do not allow me to have many blogs
5) OK, thats understandable, as far as I have a free edition.
6) So I went to the Blogs, there were 2 blogs installed, and I wanted to delete any of those blogs, but I failed, because during deletion, system again throws exceptions regarding that license doesn't allow me to have 2 blogs

So, I was in a dead spot, I can't use web site and I can't delete blogs that hamper using the site

Finally the issue was solved by manually deleting all blog-related records from the database, from the tables CMS_Document, CMS_Tree, CMS_Attachment, CONTENT_Blog, CONTENT_BlogMonth, CONTENT_BlogPost

I hope, this post will help is somebody will have the same licensing issue with the free edition.