This small room is entirely your own. You can splatter paint the walls if you want. It is not close to any major freeways, but then you don't have all of that road noise. It costs next to nothing to have your office there, but you are more susceptible to theft and there is no street parking for your clients. In fact, the bulbs in the small sign over the door are often burnt out.
Web servers are exactly the same.
Since every website is different and every organization is different, it is important to match the appropriate web server to each client. The web hosting industry is still quite young, but is continually getting better. Hosting companies are constantly offering more features, reliability, speed, space, and security at increasingly lower costs. No matter how the Internet supposedly changes the rules about everything, one rule still holds true without argument. You get what you pay for.