Good assessment. As someone who paid for the personal plan, and watched it implode from the inside, I get the exact impression you do.
The problem was the number of mistakes made:
* Offering the support line as a "literal" replacement for emergency services.
* Including a racial slur in a 503 page.
* Falsely advertising the number of servers you can create as "Unlimited", when the limit is actually 2.
* Use of a generic bootstrap theme with minimal modification.
* 404'd refund and legal pages.
* Not established as a LLC.
* No way to manage billing profiles (in violation of Stripe TOS)
* Broken and untested remix of Ubuntu Server.
* No account management portal - You can't change or reset your password at all.
* Advertised as a finished product for use by businesses, when it appears to have barely been tested in-house.
This is how you lose your business, and then get sued into bankruptcy. This kid should be happy he just lost a couple thousand dollars in server hosting and refund fees, rather than millions and the loss of his credit reputation for life.
Learn a lesson from this, would-be entrepreneurs of HN. Don't do what this kid did.