Yeah they did the same thing to me. That was the last straw for me after 12 years with ATT/Cingular/whatever it was before that. I switched to T-mobile, even though it was a bit of a hassle to unlock my phone and their coverage is not as good in my area.
I "watched" the first lesson or two. I think they've missed an opportunity to tighten the watch-try-watch loop with the student. This tachnology seems like it would support a mode like "here is how you draw a box" then "you try drawing a box that overlaps with the box on the screen". Maybe they do that later. I hope so, otherwise I think they're missing a great opportunity for engagement. Even without that level of interaction, I still plan to try this out with my children. Really impressive.
I think it's analogous to property rental vs. ownership.
If you don't want to deal with all the hassle and risk of owning or if you don't have the capital to get started, rent.
Spoken as a homeowning employee.
my only problem with them is the somewhat complicated mechanism for authentication with client certs. I could not get it to work with firefox or chrome, just safari.