No, we don't expect many will make a decision based upon 500 free hours, but we do expect many will give us a try, and make their decision based upon the experience they have during their 500 hour trial. :-)
I just can't understand the parent post indicating that it's 'huge for rails consulting companies'. After all, rails consulting companies are sending out five digit monthly invoices. A $150 discount on the first month of hosting is a rounding error in that context.
We're investigating other benefits for our Development Partners too. Any thoughts?