I actually think this is a really good concept. There is no perfect solution for what they're trying to do, but I think they have most of the things covered.

Offering one free per person is nice, it can be tricky to enforce but I think doable. Regarding privacy, even right now ICANN rules require a real name and address for the domain.

This project comes at the right time when because I see a lot of interest growing towards self-hosting.

I am biased though, I've been working on on OS for self-hosting , fully open source, Debian based, no restrictions https://github.com/malmoos/malmo