I do quite a bit of freelance work as a systems admin and spend a lot of time talking with people about their hosting, and it is getting so old. I get e-mails, or Skypes, or text from people in a panic and all pissed off because their site is offline, slow, or their Web Host support taking forever etc. The first thing I ask these people is “How much do you pay for your hosting?”. 99% of them reply with a price that is close to the $5/month mark.
Now they act all surprised, like they had no idea, but yet in the end the thing that is biting them is their own fault in so many ways. This constant and unyielding senseless obsession with wanting cheap ass web hosting has created a market where cheap ass web hosts are constantly undercutting eachother and offering more than their resources and staff can handle. Cheap ass web hosting is supply and demand and everybody demands it. This is why corporations like the infamous EIG are thriving.
If your we presence is at all important to you, and your reputation depends largely on your website, than stop this ridiculous obsession on cheap ass web hosting. 99% of the people that insist on this type of hosting I bet spend 10x more a month on things like Big Macs. Priorities anybody?