Sad State of Web Hosting Industry

I wonder if this is what is known as the Lemons problems, where the bad chase away the good. Take for eg a hosting company that promises unlimited everything versus a normal hosting company. Clients looking for bargains will take the unlimited company. There is no such thing as unlimited so they are more or less faced with lousy service.

Their expectations of hosting is thus lousy. They may not be willing to pay high prices for hosting but may pay medium prices. Such experiences occur again and again for the clients till they feel even medium prices is not worth it. So prices is lowered till the basement. As such good hosting companies are forced out.

I have seen more and more of such cases, more and more of respectable hosting companies forced to go to the basements. Really hoped those companies would stand firm and compete on quality, not quantity and on good services, not unlimited empty promises.
8 to Infinity - Singapore 10 Years Old Hosting Company