Which (if you signed up at the end of 2006 and just got cancelled) comes out to about $7.50 a month. That's more than a EC2 micro instance on a 3 year reserved plan.
At the time, though, most people were just happy to find an easy solution to Rails hosting. I think TextDrive was the first provider in that price range that actually supported Rails. (Remember, this was before Passenger and all that made it easy to host Rails.)
Dividing a user's costs by the number of months of service they got isn't fair because it ignores the high risk they took on that the company would go out of business months after they dropped their $500 or $1000 or whatever.
