Very darling. But very limited pot size--I don't see that basil lasting.

Actually we don't expect the herbs to live very long. It's very hot here in the spring & summer and outdoor herbs are VERY seasonal. Rosemary & Chives last a lititle longer. It's more about freshness and convenience versus buying those expensive packages at the store. These herb only cost $4 each and will last 4-6 weeks.

On the other hand. The same herbs in Fall & Winter will last for months here in South Florida. Our hope is they will last long enough to be consumed.

What do you do--just sit the plastic they come in in the pretty hanging pot, replacing as needed?

Replace as needed. Although depending on the actual size, I guess you could drop them in. These pots were 6.3" and we lined them with landscape fabric & drain rock. The standard nursery 1 gal. pot was the same diameter but a bit too deep. The live grocery store pots appeared to be 4.5" size and they'd probably drop in okay. But the pots come on & off the hanger clips super easy, so potting up a new plant only takes a moment. For us, having your plants in a clay pot is healthier for the plant.