Who needs hosting?
Who needs hosting? Not the small business owner. Not the entreprenur. Too complicated for him.
Many small business owners want to host websites under their own account, to save costs.
While this was OK for static sites, dynamic sites are a totally different story.
If you have a CMS, from time to time your website software will need security upgrades, or other upgrades. If you won't do it, there's a security risk.
My Story
Leat week,the site5-initiated server upgrade caused four of my sites to be disabled for a few days, until I noticed it. This was one of the reasons which caused me to stop my site5 subscription.
Yesterday, I've finished the migration of the last site. I couldn't move it to the new server, since it only works under PHP4. Another complication. I've finally decided to put it under a temporary shared-hosting account on a server which still supports PHP4.
Hosting trends
The # of people looking for hosting goes down each year (source: google trends). Hosting becomes more and more complex each year. Who needs CMS hosting? High end customers only. For the small business owner, ready-made systems will usually be much cheaper and much more maintainable.