Of course this discussion is related to paid hosting, but is not free hosting overselling in the purest form? After all, the user isn't paying anything and they're getting something. The whole point with overselling paid hosting is that the features offered at, say, a $3/month price point are available - just at a much higher price (at least in the anti-overselling person's mind). Therefore, it seems to me that free hosting itself is the ultimate form of overselling.
And I like that.
And I like that.