Yes. Websites back then didn't have hundreds of MBs of javascript bloat though so it wasn't as bad as it sounds. The internet over 56k was surprisingly usable.
Maybe in terms of bandwidth, but unless you were fine with never being able to make or receive any more phone calls, how would hosting a website have worked without a second dedicated phone line?
In addition to that, dialup was paid per minute where I grew up, so either option would have been prohibitively expensive.
It did need a dedicated line. Same with the people who ran a BBS out of their home. I knew people who had 3-5 dedicated phone lines running into their houses to support that. Paying per minute for dial up was thankfully not something I had to deal with (unless I was calling into a PoP that was long distance). I can see how the costs of that would get insane very quickly.
