The world has an option to sign-up for a free blog through Google, Tumblr and even wordpress.com (though Wordpress.com's free is not free like Google/Tumblr). So what makes you think the world will sign up for $5 service?
I am not here to 'kill' those services. Previously with Posterous we were very aggressive about that. I think people should use the service that is best for them. For some it will be wordpress.com, self-hosted Wordpress, Squarespace, and others.
We're making it for ourselves. It's a long-term project. If we make good software, then it doesn't matter if there are 500 users or 5 million.