Actually, frem what I understand, their pay model is much like the one I've setup here for LS. You lose nothing if you choose not to get onboard. You get extra stuff if you choose to show your support/say thanks for all the free stuff/basically keep the site running a bit.
I think it's a good idea, especially in the New Internet Climate where running a site out of your pocket really means just that. I don't know how many people they have backing them, but if I were to, say, lose my job, this site would possibly scrape by for a few months before folding entirely. Unemployment don't pay the hosting bill. =(