I wonder if the law enforcement folks look at the "collateral damage", i.e., all the innocent servers (virtual or otherwise), as a windfall of extra data to mine. If my neighbor gets his house raided by the SWAT team they do not have access to my house only his, but with hosting this is not necessarily true. Further, I at least know who my neighbors are and can choose to not live in a bad neighborhood or even move away if I want, however with hosting this is not the case.