Something is wrong with their pricing, since a server with twice the RAM, bandwidth, and disk is $5/mo. It's too bad you can't combine two or more of these $1 servers in order to get just the right amount of VPS.
This low price makes me wish that RAM and CPU could be added to cloud servers on an as-needed basis, i.e. hot-swappable RAM. That would be much more useful than autoscaling since it could react to traffic very quickly. You'd need live-migration behind the scenes to make it work, of course.