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The offer is legit. And one can use their own name servers - can host it elsewhere.
In addition, after 60 days, the domain can be transferred out; no need really though, since GoDaddy renewal pricing is about the best around when using coupon codes.
With all that said, for some types of sites, GoDaddy can be risky - they can and will suspend domains they get complaints about and/or contains/links to overly controversial content (even if hosted elsewhere).
Ron
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Domagon - Website Management and Domain Name Sales
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