I suspect the answer is similarly that, unsurprisingly, most hosting providers are in the business of providing hosting, as opposed to running a front for criminal activities. And that anyone caught running this criminal activity would likely be fired and prosecuted.
And of course that there is an inverse correlation between the type of person interested in petty theft, and the type of person with the skills required to do this and not get caught.
For example it would save 17000 BTC that bitomat.pl exchange lost when upgrading Amazon EC2 instance to add RAM.
If they can't detect which of the admins did it then what are they going to do?
Yeah, that's the only reason hosting companies don't mass harvest credit card numbers from their customer's websites
[1]: https://github.com/bitcoin/bips/blob/master/bip-0032.mediawi...
[2]: https://github.com/bitcoin/bips/blob/master/bip-0038.mediawi...
Edit: adding a strong pass-phrase /does/ give you a significant level of protection; While it doesn't offer protection from an evil maid type attack (where the attacker trojans your server, then you decrypt your key after said server was compromised) it does offer quite a bit of protection, say, from an attacker who has access to old backups but not your production system. So I think a passphrase on all of your important private keys is a worthwhile thing to have.
I just want to make it clear, once you decrypt that key from within a compromised system? all bets are off.
[1]https://www.schneier.com/blog/archives/2009/10/evil_maid_att...
[2]https://news.ycombinator.com/item?id=6148347 (of course, this specific attack wasn't as scary as it could have been, say if the same sort of thing was remotely accessible)
[3]http://theinvisiblethings.blogspot.com/2010/04/remotely-atta...