Another way of looking at this is that you need many more customers. The overhead of doing all this for a handful of customers is significant, it only starts to pay off at certain economies of scale.
I'm just a webdeveloper hosting some of the people/companies website I work for. Since from time to time I have to get my hands dirty with their projects again, I prefer to do so in an environment I know because I set it up personally. If I had to let them decide, most of them would go for crappy inexpensive hosting providers and additionally I would have to deal with a lot of passwords when I get to deal with their stuff again.
The money I live with comes from me coding stuff, not from the hosting. Since I am trying to get a personal project up and running I am trying to cut all the expenses (time/money) I can possibily cut or reduce; that's all.
