Cheap hosting does not really benefit those who are looking at running high quality e-commerce websites. They do not fill quickly enough to support most of the programming that you will be doing and it will annoy too many of your clients or customers. You will actually see a drop in revenue by opting for cheaper hosting and will see less profit.
So, it begs the question over who this type of hosting does benefit. If you are looking at running your own small personal website, something that you can use for advertisement revenue or something that is just informative, then you will benefit through the use of this type of hosting. The cost is low and affordable and the capabilities are what you will be able to cope with.
This hosting is also beneficial to students who are playing around with websites and learning how to handle them. It is affordable on a student wage and offers everything that a student will need to help with their web development skills.