Well, the way I see it is to make it as secure as possible with the least amount of hassle for normal day-to-day site operation. Having said that I don't know the details on all the security gotcha's when setting up hosting on a public server. However, there are probably great how-to's on the net around these topics.
I recently discovered a host where the php process runs as the web account user so there's no need to change any directory perms when installing Joomla and components/modules/plugins. It's so easy to run a Joomla site on such a setup. That's done via running PHP via CGI+Suexec (
hostingfu.com/article/running-php-on-shared-hosting
). That is by far my preferred setup as far as ease of use for the end user and maintainer goes.
Of course, if you have ssh access to your web account, then you can have good control over your directory perms very quickly but it's still a hassle. You definitely don't want any dirs and files to be world or even group writable on a live public Joomla site. It just invites hacking attempts and you can't even control those since they might come from other shared hosting vulnerabilities or from other user accounts with insecure PHP scripts. Safe Mode is an easy way to keep PHP tight but does no good to Joomla so you'll need to implement security some other way. register_globals should be definitely off. Then there are other PHP variables to look at but I'm not so knowledgeable as to what the settings should be since I'm not a security expert but someone else might be, or I'm sure there's lot of info on the net about this.
It'd be good to see what the recommendations are. Then it might not be so scary to go for a VPS or even dedicated server setup. In my case, the lack of knowledge in the security area prevents me from considering those options for my hosting needs. I just don't want to spend weeks learning all the ins and outs and then you also need to stay on top of it all...
If dreamhost performed better and didnt have the problems with spam and the setup of Spam assassin I would be all set. I like multihost right now. I just bill my clients anyway for hosting as part of a yearly payment. I do see the advantage to private branding of the hosting. The hosting servers can have your domain name in the address and that adds credibility and lets you set your own pricing and markup without them knowing exactly what you are paying. So at some point in the future reseller hosting would be of interest to me.
I really just want to find a reliable server for Joomla performance. I am a one man show so I like the speed of setting up nice looking sites with a lot of functionality in a few days. But if it is laggy or slow to load the initial page it is not gonna work. Dreamhost has one-click install of Joomla and it really only saves you a bit of time. Joomla is not that big a deal to setup anyway so the one-click is not crititcal for me. A server that is Joomla friendly is important though. I dont think I know all the criteria for what consitutes Joomla-friendly at this point but, a host that had a good batch of Joomla sites to demonstrate as examples would be a good way to evaluate.
So price is important but in the case of dreamhost, if it does not perfom the way I need it to then I may need to pay a bit more and find the best bang for the buck.