Selecting the most appropriate level of website hosting solution is like discussing with your Independent Financial Advisor the level of payments you should make to your monthly pension. You will be persuaded that in order to live out your retirement to the "level to which you have become accustomed", you must contribute a significant lump sum every month.
Many website hosting companies will have you believe the same. You will reap what you sow. One of those "doomed if you do, doomed if you don't" scenarios.
In reality the price of website hosting has fallen through the floor in the last few years. In general the levels of service, particularly in levels of downtime and speed of access, have also improved dramatically.
So if you are hosting private medical details, MI6's case files, or your business will be crippled the second your website goes down, then yes, you do need the most expensive and secure website hosting.
But 8 times out of 10, there are much cheaper solutions that will more than amply do the job (as long as they are being entirely honest about which country the servers are in).