HM. It is certainly a very broad subject, one that cannot be answered with definitive statistics finding.
But having said that, charging a price that is high enough and disappoint your decision, is certainly true. Depending on what type of market are we talking about. Basically the 2 types of market; Saturated/Matured and unsaturated/innovative state market.
Such saturated market, with people charging at premium prices must deliver what consumers promise. If one finds that even paying at premium prices, the host still is not able to deliver the premium value, certainly, the consumer will leave, and tell the world about it, such as not worth the price that sort of comment. The host will run out of customers sooner of later due to absurd pricing, the matter of sustainability will drive this host, to fluctuate with market demand, simply, by using pricing as value factor. Driving it down, so as to offset fixed cost.
So basically, the customer ran away looking for a host that will really deliver this premium value that another host is able to promise. So long as the host is able to provide the premium value, customers stay, the host remains in profitability, then it is suffice to say this is the host that provide "Premium Value". Demand is growing and the premium host is able to stick with the price, charging them a premium while not scaring customers away.
In an unsaturated market/innovative state, people are usually not aware of the standard pricing of infrastructure. Since there is literally less competition, the customers is not able to switch between providers. So charging them at a premium price is not of concern of sustainability. This is true to some B2B software framework used in managing databases. Organization once bought the software and used it for a 1 year or so, even they are not so satisfied with the performance of that software, they are not able to leave because of the database encoded in a different language. This is the type of industry that you will find absurd pricing.
On the other hand, host that is able to provide services cheaply and provide crazy services exist. And I know a few of them around. But, I cannot totally say they exist, simply because, there are some services statement included, whereby consumers are expected to have certain skills in order to enjoy the good services.