I don't recall this ever coming up here on the forums. If you've done a search here and on the wiki and come up blank, I suggest contacting pre-sales support at http://dreamhost.com/contact.cgi.
Yes, I know people who have used their free registrations to do transfers. Dreamhost doesn't charge a transfer fee, but has a one year mandatory registration renewal for transfers.
You are the legal user of the domain, with the right to transfer the domain free of charge to the registrar of your choice. Dreamhost is your designated registrar. This is commonly referred to as owning the domain name.
I've only transferred domains out and not in, but we have not heard of any incidents of people having problems transferring their domains out, even when their hosting account has been terminated for ToS violations.
I think Dreamhost's stance is the same as it's always been: you are fine as long as you are abiding by the Terms of Service and as long as you're not negatively impacting the ability of the server to serve other customers. There is a process killler that will kill long-running processes and there is a memory limit. There's also a (reasonable) limit on the number of open connections. Dreamhost is depending on the fact that there are very few use cases for using your resources to the limit without killing the server, but if you do need those resources and your websites can be served well in a shared hosting environment, then go to it! There are just a microscopic number of legal and useful ways of using up your quotas.
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BTW, you'll easily be able to find any promo code you're looking for by looking in the sigs of the posters here.
Use promo code [color=#CC0000]50DISK50[/color] for 50% extra disk and $50 off
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