Definitely Legit
When I saw this post, I checked out their website and googled them. I read some stuff about 1&1 being a foreign based company and fairly large, yada yada yada.
Their website claims that they spurned their advertising agency and with the money saved instead opted to provide three years free service to build a large customer base.
Well to make a long story short, I emailed the link to a few friends that I thought might be interested in their offer. One of my friends runs his own marketing research firm and Manhattan and called me as soon as he got my email. He wanted to know how I had heard about 1&1. I responded that I found it on one of the coupon sites I surfed and thought it sounded legit, besides there was little risk since you didn't have to input a credit card.
Well, apparently it is a small world afterall. Quite a while ago, he was hired by a large advertising agency that he does work for to conduct focus groups for a foreign hosting company that he had never heard of before, that firm being 1&1. He conducted the focus groups but then learned that the advertising agency didn't get the job. He then never heard anything about it again until he got my email.
Apparently they are legit. I myself rarely post here. I have no stake or interest in 1&1 and haven't even switched my hosting over. I don't pay much now and don't feel like the hassle of moving everything over. HOWEVER, if you happen to need hosting you should know that at least according to what I have learned, they are legit and I wanted you to know it.
LMP
P.S. - I love this site. I've been lurking here for over a year and have found countless deals. Spoofee is by far the best coupon site. Thanks guys!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!