I just thought I'd bump this to say that they activated my account (even though it took a few days - I'm sure they're getting swamped with new account requests). I just set up my gallery there (really the only thing I need hosting for), and it's very fast. As far as I'm concerned, I've already gotten my dollar's worth.
I'm fully aware that they've got to be massively overselling their capacity, may pack up and flee the country in the middle of the night, or whatever - but for a small personal site (like mine), it's more than adequate. Hell, I haven't even had hosting for my gallery for at least 2-3 months prior to this deal, so if they do disappear overnight, I'm not out more than a dollar (I make sure to keep current backups, of course). I'm sure you wouldn't want to run any kind of mission critical site with these people, but for $1 you shouldn't expect otherwise...
Edit: My gallery is at
http://www.synthdude.com if anyone's interested in checking out the speed. Before you laugh at the pictures, keep in mind:
1) Yes, I am a nerd, I make no apologies for this.
2) I've lost about 35-40 pounds since the most recent pictures of me in there.