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This is a bunch of nonsense, I got no forewarning and it came out of nowhere. Looks like I'm going to be moving to another hosting site.
AppFog has been working great for me (a couple of static sites, a rails app and a php/mysql app).

It still has some quirks, such as no persistent storage and issues with their admin interface, but you can use Amazon's S3 to solve the first and work with their command line utility for the second.

Is this a big deal? With my limited understanding of networking stuff, couldn't you just set up a CNAME or something? Without showing the user the full url? I agree it's a slight inconvenience, but it's not a huge letdown.
now if you want to use the zerigo dns addon, you have to add the site via heroku's website or cli before you can set records for it.

if you're on basic/free they forbid this.

Cnames won't work for your root domain (example.com) since heroku can sweep IP addresses from under your feet.

An ALIAS via dnsimple won't work either, as proxy.herokuapp.com has to resolve your app's domain.