In the days of shared hosting, you could drop $3 to $5 to host your small website and expect your website to decently perform. But with your DO/Linode, you can expect excellent performance for the same price.
Only last month my two $5 droplets handled 5 million web requests from a viral post.
Simple budget web hosting packages can easily handle tens of thousands of requests per hour for like $4/month..
You're absolutely right.