I actually meant in the webmasters eyes - we decline a lot of link lists & tgp's that look like they are nothing but hosted sites/galleries. (meaning that a submitting webmaster *may* not think it's a "legit" link list)
As far as how I add free sites, let's take Extreme Paychecks as an example, as they release 10-14 new free sites each week - I'll add 2 per day - and their freesites are good in that they are on different domaisn, so adding more then 1 will not make it look like I'm adding a bunch of the same sites/domains each day.
For the most part, it's 1 per day when the sponsors release new ones until I run out.
But I am an exception to the rule, because I have 8000+ links already, so throwing another 3-400 hosted free sites in isn;t going to distract from my regular listings.
Of course, you could hide the fact that you're putting in hosted free sites with creative mouseovers
