More customers means more support requests (especially if it's a cloud service) and customers that only get the product because it's cheap tend to be the noisiest and most unreasonable. The post mentions paying the rent with the earnings so I'm assuming more revenue is wanted too.
So long as overheads/support costs are low, having a cheap entry point has to be a good idea, if there's volume to be had. Especially if you have higher-cost options too for up-selling.