> the interesting thing about the hosting market is the less people pay, the more entitled they feel.

This is not restricted to web hosting, but common human behavior.

I've freelanced as a web dev and wedding photographer in the past. Low paying clients typically demand much more than higher paying ones.

I've found that more often than not, this is because those who are constrained to smaller budgets tend to be personally invested in the success of their business where return on investment is of critical importance (i.e. small business owners).