Good design embodies good functionality. The two should go hand in hand.

You don't need your web hosting provider to look good on the backend as long as everything you need is there and fairly easily find-able (and that itself is good design). Doesn't matter if they provide an awesome service if you can't set it up and use it quickly and efficiently.

You also want your front-end consumer-facing application to look good, especially if you're trying to disrupt a market rather than create a new one.