Hi,
Since bitcoins have been pretty volatile lately, I have changed the pricing of my 1 BTC Hosting package to donation based.
Details on the site here:
http://1btchost.com/dM
Yeah, it was on my to-do list to ask you what are your plans for the present when "1 BTC/mo" is no longer impressively cheap. I totally get that the overhead of managing payments could be your most significant cost for this service. I hope you won't lose on this service.
Well, the initial outlay was not huge. You are correct - the main overhead is management.
I started the service mainly to provide reliable cheap hosting for the bitcoin community and get some real world experience of providing a service for bitcoins - both of which have been a success.
Whether I make a loss or not now depends on how happy my customers are with the service.
But even if I do make a loss it will not be a huge one so that is ok. I will keep the service running as long as I have hosting (the foreseeable future).

dM