Correct on the free listing promotion. At least on all of the recent ones they have done, it doesn't matter what your starting price is, so you can basically treat it as a 7-day (or 5-day, depending on the fine print) fixed price listing if you want. They do change up the terms a little each time though, either limiting the number of free listings, or making it for specific durations of listings, etc. Just make sure you read everything. But you're right in that, if it doesn't sell, there is no cost to you. That only applies to the basic listing though, so if you do any add-ons (10-day listing, reserve, etc) they will tack those fees on, so just be sure to read what is included in the freebie before diving in.
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