The user in the request is right...the FAQ does read as if it only covers two situations: Purchasing a new account, or paying for an Early Adopter account.
Proposed change to FAQ:
current text: If you paid to create your journal, and let the time expire, your account status would convert to "Free Account".
changed text: If you paid to create a new journal, or if you purchased paid time for a pre-existing free account, your account status would convert to "Free Account" after your paid time expires.
Or something similar.