Also sometimes a reseller will be able to provide better pricing than the main company. Especially in the case of end user support, you're getting the support provided by the main company but you're paying the reseller's prices. It actually works out to a pretty nice deal for the clients if you can do it right.
Thanks for your thoughts!
But I strongly believe that this particular case is very, very rare. Generally the resellers charge more than the main company (many times much more), because this is the way they make the pure income. Reseller packages are often equivalent of the Shared packages, in terms of resources. So in order to sell those packages cheaper, you would have to cut their resources down (and many hosts won't even give you the option to divide the Reseller package on portions of your choice.
So, from the point of a Reseller, you would have to find a not very expensive hosting company, giving you absolute freedom of splitting their packages, but also with enough resources, so even if you split the package each user should receive enough for their web project. Now combine that with the option to have an end user support from the host and we have got to a point, where being a Reseller comes down to lying down, with a cocktail in hand, while your host deals with everything else for your customers. As superb as this may sound, I do not recall even 1 web hosting company that is close to being able to provide that.
Apart from that, point taken about the number of white labeled services, indeed there isn't a lack of options, I just don't find this type of support widely used. :rolleyes2
P.S. Kudos on the usage of the word "obfuscated", I always find pleasure in broadening my English vocabulary and that one was spot-on