Right now, the physical or dedicated server doesn't cost too much. My biggest problem is not the cost of 1&1. Actually they are relatively cheap.
My problems are
1) root access server: I am not comfortable that 1&1 will not have tech support for me even if my root access server under hackers attack, and I am willing to pay for that service. I cannot sleep well that knowing if my system crashes that I have to call for 3rd party linux/unix expert to help me.
2) managed server: since 1&1 tries to keep it to the simplest set up that they would be easy to manage. basically it is designed to one client (that client can have several domains, etc.) not for shared hosting. I will not have the easy to use plesk user interface. I will have to manage all my clients emails etc. by myself. And all the extra set up and updates I have no rights to request. I am on their mercy, i will get what they give. Now, the system is new. I may be able to run all my sites on the server with minor fixes. But how about future, I am sure that I might run into some problems their set up cannot work.
I know there is no perfect solution, but I am looking for either
1) more like my current local hosting now but the traffic will not be so expensive. and the machine could be newer.
or
2) more like 1&1 root access server but at least with some emergency software/system support (it could be at 100 dollars an hour etc.) that i can depend on.
or
3) more like 1&1 managed server but design for shared hosting environment. (they manage the server for me, but at least the server was designed support shared hosting, such as plesk and other shared hosting features.)