This programm is to bring back old player that left and bring new young blood to the game. A Lot have change and this is one way to introduce them. Yes the free account will not be able to access some dungeon, loot IDOC, place house, Will have limited back storage. If you decide to turn your active account into a free account, you will be losing alot of grandfather option.
So if you are planning of having those free account to farm wood or iron, you are up for a rude awaking I believe.