[zyxley]

> Seriously what possible reason can they have for this for simple web hosting? What are they afraid of or is there some financial angle?

Scammers who use stolen credit cards and Paypal accounts to purchase cheap bulk hosting and send out floods of spam emails (before the account gets shut down) and/or set up imitations of other websites for phishing attacks.

Simple, cheap web hosting makes this more of a problem, not less.