Everytime someone from oDesk says a client asking for free work has been dealt with, I think it is simply a copy-pasted response. If not, then what would explain the fact that flagged jobs and clients are still up on the site despite supposedly being addressed?
OP, true, US$0.01 per word doesn't deserve bothering with. Since when and/or where is US$0.02 to US$0.03 an acceptable rate for a professional translator.
The problem is good freelancers come, but will not stay.