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As pointed out in the article one person linked, all previous accounts have been removed along with all the data associated with those accounts. Mine was one of these accounts. Learning that things have changed hands, I am no longer trusting of what will be done with the data submitted.
Copyright is so cheap ($35 for a basic copyright), why would you even bother risking it with a free site?
It's not a scam, but it's not registered copyright as in "registered with the copyright office".
It offers you minimal protection, which for some might seem better than none.
MFC started back when they were debating the US gov. was debating the new copyright amendments. In that debate was something about copyright registration becoming a private business, rather than having it run the way the copyright office currently is set up. Costs would be per image (as it is in Canada) rather than per disc full of images. At that point there were some folks thinking ahead and setting up copyright registration "companies" that would apply to be granted status when this was passed, which as far as I know, it never was.
MyFreeCopyright is helpful in that it lets people viewing your work know that you are aware of copyright laws and that the image is copyright protected. You don't need MFC to have copyright to your work.
Registration in the copyright office is required when you file a lawsuit though – at least if you want to recoup as much money as you can, and in that case, MFC registration would be useless.