This is what off-site backups are for. You have them, for your hosted services as well as your home ones, right?! OK so with a hosted service you have the advantage of them managing uptime and recovery matters to an extent, but I still prefer to have my own backups on another host, so I have the data in my hands if the whole service goes offline for a time.

I'd agree with your other points but I don't think the "what about a site-down situation?" matter differs between self and remote hosted options (unless, perhaps, you are paying a pile for nice renumeration-backed SLA promises).