Hosting performance / Hosting convenience
blog.fortrabbit.com
blog.fortrabbit.com
Say what you will about how awful shared hosting is, but the one-click installer of Wordpress et al has proven that a market exists where people are happy to pay to host things in the most convenient manner possible. Of course, in a more technical community, performance is part of a factor.
You don't even have to dig very far into these discussions to find the guys who don't abide hosting at all. They can't fathom why everyone doesn't build their own bespoke hardware and string together their own orchestration.
People who don't build their own server are either lazy or stupid. (not saying being lazy is bad)
The better question is, why can't you have both?
We end up with a bunch of infrastructure that for the most part runs, updates itself, scales itself, and is pretty secure/safe by default. That's nice, and worth paying a little more for.
It doesn't need to be fast for us, because we have designed accordingly. It is "fast enough".