This is free because we are leveraging existing infrastructure that we have for our managed hosting services.
Its free and will always be free. There might be value added services such as web application firewall and perhaps full site caching (instead of static elements) for a fee, down the line.
As far as space, we are bypassing certain elements and features such as gzip compression and optimization of images if they are above a certain size (just because of processing power it would take).
Where things like restrictions might happen is in a scenario where people take advantage of the free service and use it for malicious purposes. We have tried to take measures to prevent or discourage this but hopefully that wont happen!