I was searching "WebHostingLobby" on Google to see what came up and ran across this thread. Thank you for spreading the word about our project.
I agree. I personally would NEVER sign up for web hosting this cheap simply out of fear of sustainability. However, my Web Hosting Lobby project is not intended to make profit via hosting (i.e. $2/year is simply my cost). I use JaguarPC and InnoHosting reseller accounts (cost is $20/month for each) so rest assured there won't be a need to 'go out of business' as my only cost to sustain this is $40/month.
The goal is to drive traffic through very low cost web hosting and offer other products that will bring revenue/profit, all of which will be donated to charity to support orphans.
As mentioned on the website, I am an Accountant by trade and am simply doing this on the side as a project to fulfill two passions of my own, technology and philanthropy.