It seems to me that a fairly well-hidden feature of Google Apps is that you can map a Google Site to a “regular” url, like www.example.com.
In essence this means that if you get all the features that you want with a Google site and the other integrated services (email, calendar, docs, etc), then you can use Google for all your hosting needs. Obviously if you want WordPress or some custom component, it’s not going to meet your needs, but it will work for a lot of people, and it’s free (and obviously very reliable). It’s also got excellent documentation, ease of use and in the long-term a web site design contractor doesn’t have to worry so much about those endless requests for support or upgrades.
I’ve just more or less finished setting a friend’s business up like this and they couldn’t be happier. It’s a site for a rehabilitation service for pets.