I think a few more points against free hosting are
1.) Link lists want to know that youre sites are going to be there tomorrow and not gone and redirecting. This is nothing against you but I think that most serious submitters use paid hosting.
2.) Alot of link lists dont list sites on free hosting. Link lists want traffic in return from your site (to make up for the traffic that they lose to other recips). So if they list you and noone else does, they dont get any return visitors to their recip from other link lists because noone else (or very few) listed our site.
In conclusion, worse things can happen
Get some paid hosting (even very good hosting is cheap nowadays), get your domain removed from the useful scripts website, youre back in business.
Cheers
WB