Sorry that was short - I've used it a half dozen or so times, ran across it on a site I inherited I think and it's worked pretty well for moves. I am not a wordpress specialist, nor do I think I ever want to be, but it has its uses.. WP is good for some people. I like what I call hapa sites (part real that I control and part CMS that the client can post to), so it is used for its primary strength, as a blog.
You don't have to completely understand the Wordpress lit on moves but you do have to change a few paths, and you do need to do it in a certain order. I don't use it everyday and I think I found out once the hard way that it was best to at least reskim their lit.

no consequences other than wasted time.
And you don't have to start with it in a subdir of the same domain. If you have some spare space, you can develop the site on a different domain under a subdirectory (just like you might for a real site that you were developing for someone before they bought their own space), and then move it.
And if money is less important than time, and you want to leave it where it is after you are done with it, I think FQ can change the landing page for your hosting space to make that the root for a one-time fee. I haven't needed to ask them to do this, but I'm almost positive it is an option.