Not entirely true - I also run a hosting company - and all sites have to comply with our TOS, which in turn we have to comply with our upstream providers. Therefore if we got a complaint against pirated software or illegal site then we will act without delay.
If we ignored it then the complainers have the ability to go upstream, and apply pressure to us that way.
If they had their own server, then they would still have the server in a datacentre who would have their own TOS - or if at home then their ADSL provider.
I am not denying that rules seem lax in certain countries - but is a site owner going to keep moving their site - I doubt it in most cases.
