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Freehosts are normally not worth what you pay, that is how they make their money.
If (when) they no longer make money, at least their domain has lots of 404 traffic.
I can't say for certain that google et al take this into account with their algorithms, but were I coding them I probably would. Search engines are in the business of helping people find what they are looking for, and 404'd traffic en mass does them no favors.
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