Call me all you want, I still make mad money hosting. Flames from you are like water on a duck.
The difference between you and I is my customers aren't small potatoes and need a lot more than just landing page support. I took a job this Spring after 7 year of self employment because an existing customer switched jobs, took a high ranking state job, and insisted I manage things. I also get a ridiculous salary for what I do, so flame all you want, won't change a thing.
Maybe I'm a little green to the needs of the AM industry, you have me there, but don't assume that because someone hosts a site at home it's not worthwhile.
And for what it's worth, you spewed a ton of academic textbook/corporate IT policy verbage in your post, but nowhere did you address the simple business requirement the guy wanting the server had:
For 1K WP sites, he's not going to function unless he's got a little horsepower under his belt.
I'm not saying your points are wrong in the grand scheme of things, but for fucks sake, don't discredit my solution simply because you want to play Internet Tough Guy. No matter how you slice it, poor solutions don't earn, and I earn plenty.