Yes they can still technically call it "free" but if you take the free option be aware it now doesnt integrate with your Joomla database (which to me means it isnt a proper joomla addon) and so all your members are forced to be "guests" and make up usernames. Also to be aware off is these are no longer private chatrooms but allow any of the blastchat users to enter your chatroom with no moderation whatsoever.
Obviously if you choose the subscription method you will obtain a lot of the previous free features back and also include joomla integration as well, but having looked around there are several chat software programmes that integrate into Joomla for the same price as Blastchat but offer dozens more features and customisation than this. Even if you want a basic free chatroom, there are much better options available.
Up until the recent changes in policy this was THE best free chat that fitted into Joomla without too much editing. But now, with the removal of joomla database integration on the free service, it isnt really worth the time or effort installing when you are better off just looking at other free chat services that are much better.
Before I would have given the product 8/10 but now i give it 3/10. Only install if you are not prepared to look around for another free chat software and willing to put in some patience with the sometimes difficult installation process.
Our free version was recently adjusted and now it includes free username integration as well as basic moderation (kick/ban for admins).