I think their delusion is probably in what they consider a small business. A lot of people on here, given their work experience, think of small as something with a few hundred employees.
If you're building a tiktok competitor, that's definitely going to require an enterprise plan, even if you have only 4 employees.
Yes, plus a strong bias toward IT-heavy businesses. Vs. if my company is doing commercial landscaping, or machining gears for automobile transmissions? Several hundred employees still gives me no reason to pay much for web hosting.