I can recommend trying AppHarbor - we're striving to deliver a better .NET and Windows cloud platform. Feel free to shoot me an email (rs@appharbor.com) if there's anything I can help with.
My workflow is:
1. Write code on dev machine.
2. hg push to BitBucket.
3. AppHarbor hook reads new push from BitBucket and compiled on their service.
Simple quick and easy deployment!
Once thing I wish they would offer is free domains like Heroku does. Hopefully this is a feature they enable in the future.
Is there a legitimate technical reason for the cost, for example? Or is it subsidizing some other service? Or is it that high just because some people are foolish enough to pay that much for it?