The free hosting market nowadays is already saturated with these offers. How about a free VPS offering?
Unfortunately, offering free VPS(s) would be significantly harder/expensive for me.
Very true. That's why there aren't any free VPSes available.
It's a pretty good idea. But what will entice us to use you service over other services?
Strict guidelines, but quality servers. None of that overselling, overcrowded free hosting servers that 99% of free hosts have.

So it would have full cPanel? All the goodies? No locked functions like most other providers?