I get both of your points, gentlemen, but I think you are just arguing about two different philosophies in handling refunds. Neither of the approaches are incorrect. But the ability to cancel service after the MBG in case it falls apart or doesn't live up to my expectations in any way provides a lot more flexibility and comfort. Personally, I would rather much go with a host that understands this and wouldn't want to wage war with annoyed customers.
So at the end of the day, it is just a matter of choice of how you run your business.
a MBG is relevant as if they signed up agreeing to a MBG (which is usually within TOS and stated on a hosts website) then after the MBG period they are not entitled to any refund, it is a moral issue if a host refunds, but then why have a MBG in the first place if you are not going to stick to it.
There is, however, another factor at play. Suppose I sign up for 1 year, I get 1 month MBG. Then, after a month, legally speaking, I am out of luck if I wanted to get a refund just because I trusted a company to deliver. I signed a contract, so it makes such terms legal. However, as a customer, I am also stuck with you running the show as you please. The service may decline, staff can be rude, etc - then what?
Your analogy with products like TVs also do not work. You are comparing a service-based industry, directly depended on your performance throughout the life of a contract to a product. A TV isn't going to be rude to me, it can only break down, in which case a warranty is there to fix things. Certainly I can't bring back a TV outside the MBG period just because I don't like it (even though some retailers practice a lifetime return policy, such as Bed, Bath & Beyond).
PS: By the way, in Canada (I assume the United Kingdom isn't far different), there is such a thing as the law. Anything a Civil Code would cover is considered public order, which you simply can't contract against it. In other words, I can sign a paper with you that I waive all my rights as a human being, no claims to your company, as long as you deliver. Then if you disappoint, I can still win my case if you fail. Whether my claim at that time is reasonable or fair - that's up the judge to decide, not you or me. You could try and waive the signed contract all you want, it isn't going to be looked at in court if it breaks the civil liberties that everyone enjoys.
so why should everyone run their business they way you tell then too?
Please note that he is not telling people how to run their business. He is only sharing how he runs his.