If you have a self-serve model over the internet then that is much less true, and having the appearance of grandness is extremely useful.
Kudos to Twitpic
At one point, I had 12 servers in our study. Eventually the wife decided that the ungodly humming and tangle of wires had to go. Haven't hosted "in-house" since.
I went on holiday which was a 6 hour drive away. On the way out, I got word on my mobile that the sites were down. It was too late to turn back with the kids in the car etc.
That night I drove 6 hours home, reset our houses power switch which had tripped for some reason, and spent another 6 hours driving back. (This time I left a key with a neighbor). I got back to the holiday house just in time for the kids to wake up...
2 weeks later when we returned from holiday I got a dedicated server at a hosting co.
(Or, better yet, switch to the active voice; e.g., "I run TwitPic.")
Lamest coming out ever.