This is pretty bad still, with colocation you can get the costs down to 1/100th with good deals at datacenters especially ones that are struggling to attract customers. Most of your bill is power so if you rack efficiency optimized servers you can have a lot of compute for very cheap.
In terms of networking many offer no-headache solutions with some kind of transit blend.
<rant>I recently had to switch away from hetzner due to random dhclient failures causing connectivity loss once ip's expired, complete failure of the loadbalancer - stopped forwarding traffic for around 6 hours and the worst part is that there was no acknoledgement from hetzner about any of these issues so at some point I was going insane over trying to find what is the issue when in the end it was hetzner. (US VA region)
In terms of networking many offer no-headache solutions with some kind of transit blend.
<rant>I recently had to switch away from hetzner due to random dhclient failures causing connectivity loss once ip's expired, complete failure of the loadbalancer - stopped forwarding traffic for around 6 hours and the worst part is that there was no acknoledgement from hetzner about any of these issues so at some point I was going insane over trying to find what is the issue when in the end it was hetzner. (US VA region)