I totally agree with you. I also suggest a paid hosting service or a free one to host your own website.You would need a high end vps, you will need tons of space, bandwidth for sure. I honestly suggest paid hosting service, or ones that offer it for free. On your vps though I don't suggest it as a good idea.
It all depends on the website that you want to host. Generally, if I owned a VPS, of course I would host my websites there. If I'm paying for it, I don't want to waste it!
I do not own a VPS, though. I go with shared hosting because it is much cheaper and does what I need it to do.
it's rather exorbitant and you would pay more than actually going for the traditional one, the casual webhosting!