Hosting for free never works because since it isn't paid for, the people being hosted have:

a) no real right to complain about downtime, lag, issues
b) there is no steady contract in place to protect what is being hosted

IMO Free hosting never works out. It takes away the knowledge that people as designers and freelancers need to be able to order their own hosting, setup their own account, link their own domains to the account etc.

At the end of the day, you get what you pay for.