OK, first of all, until you know the entire background, you can't simply assume his service is doomed to failure before it even gets started.
Second, although I wouldn't even consider placing a business site on a FWP, those that are just running a personal site really don't have all that much to lose by taking a chance on him... Hey, if you already have a page on Geocities, leave it there and set up a mirror with the new service.
Third, He doesn't have ads but as near as I can tell, he isn't offering any guarantee that there won't be ads in the future. If you insist on ads, join Crosswinds... the (formerly guaranteed ad free) multi pop-up web provider.
And last... Who can tell... He may succeed and end up buying Yahoo, Crosswinds, AOL, and Microsoft