iWeb has the same sort of super-cheap hosting, but they fix your stuff on a "best case" basis. I don't blame them. Spend a few hours on a customer problem and you're losing a ton of cash when it's a $3/mo. plan.
These sorts of complaints are ridiculous. It's one thing to host some little family site on GoDaddy shared hosting, but for anything real...come on. You get what you pay for.
Why do you say that? Do you have data? It seems just as likely that it doesn't work for a lot of people, but they can survive on the churn from new customers (and subscriptions) -- or convincing people to provide a poorer service.
It doesn't have to work for anyone for this to be succesful for GoDaddy. They just have to be able to collect on enough people, with decent churn for new blood.