The free part is the state download that helps walk you through the steps. If you had a 2nd state you needed, you'd pay a fee to download a second state plug-in and a 2nd $25 to e-file that one.
It's not clear to me either that e-file is not included like it is for Federal. Perhaps Intuit can explain what their costs are that precipitated the $25 fee and how that differs from their costs for federal e-filing.
