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Well, some ISPs have in their contracts a free custom mail and webserver for every customer (for example, mine does).

This obviously diversifies the options quite a bit.

Having my email or webserver tied to my ISP seems terrible. What happens if I want to switch?

That's the way it always used to be - for example, many americans still pay a small fee to AOL.

But you can just move it to any other hoster.