It's just the public website.
Our production servers (where we host our apps) are co-located elsewhere. And we pay more than $6/mo for them.

We don't do anything special with our public company website, it's only a few dozen pages or so, so why worry about maintaining a server and do all the security and stuff with it? We thought about building a server and hosting the website ourselves, but right now it just doesn't make good ROI sense. As long as the host is reliable why would it matter how much it cost?
Likely we'll host it ourselves eventually but just not now. Unless 1and1 sucks, in which case we'll try another host and then fall back to hosting it ourselves.