Hi max30, I tried too, to install typo3 on 000webhost, but it seams that it does not work.
About mysql_list_dbs() it would not be any problem because you can specify the name of database within localconf.php file

But what i noticed that it does not work is the fact that when you want to press right click on something it should appear that dialog box. Well it doesn't.

That is the issue. I believe that this answer came late but ... now i had your disire too. Maybe that if we pass on paid hosting than we shall be able to do so.
Bye.