First post on HN, but definitely familiar with GoDaddy reputation (SOPA stance, some think GoDaddy sucks, etc). I've thought about this. May offer other registrar options for the GoDaddy haters.
A tagline to draw interest is a good suggestion! Will consider adding one.
The domain names are retrieved from expired domain lists published daily (various sources). I wrote a backend script to check domain name availability with a Whois lookup (runs every 2 hours for updates). At any given time, a random sampling of a larger domain set is available on the site for quick shuffling.
I am always on the hunt for good domain names. Keyword search is a start, but I've always wanted to just browse random domain names to spark ideas. Built this quick web app in a weekend to shuffle through expired domain names which are available for registration.