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Can you publish a free SharePoint hosted app to Marketplace that will offer some basic functionality and offer users to purchase a plan or a subscription kind of like if they want more functionality?

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Yes it can be done, but it's not supported, nor banned by Microsoft:

Another option is to try and cheat the system. Microsoft allows “free” applications in the Office Store. You can use this to your advantage by having an apparently “free” app coupled with a subscription model. Office 365 users would be able to see your app in Office Store and install it on their system for free; then the minute they try to use it you can inform them they need to buy it. Of course, you will be entirely responsible for building the subscription model into your app, and handling the billing process on one of your own servers, but at least you can get a lot more customer exposure through the Office Store without Microsoft charging you. This approach may sound unethical and a bit nefarious, but Microsoft is actually on board with this option for the time being. I’m sure someone in accounting is going to challenge this approach one day.

Ref: A Developer's Look at the SharePoint 2013 App Marketplace

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