There is no way it's giving away 1 Bitcoin per hour. I can't imagine someone wasting their time on earning 0.00000038 BTC per hour and I'm sure that Freebitco.in will be good at catching bots. Also, we shouldn't forget that there is a high chance that since the reward is so low, lots of people will try their luck with BTC Multiplier dice game and since their house edge is very high, lots of customers will lose their free earned satoshis in this multiplier.
You're right that a lot of people lose everything in the hi/lo game. As I see it, now, it would be extremely problematic for regular users to go from 0 sat to reach the minimum 30k sats in order to be able to withdraw sats from freebitcoin.
However, I honestly wouldn't be surprised if there are still users (cheaters) who are still farming free sats on freebitcoin around the clock.