I agree with you Blue on principle, but considering that Alan (a year ago) hadn't the necessary knowledge to manage a server and needed some web space fast, I still think it was best for him at the time to go with a reseller account.
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If you are planning on hosting other peoples sites then of course a real reseller account is the way to go.
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Alan said:
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I am a web designer(...) I have been thinking of setting up my own web host for use with the sites I design only!!
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Those would've been his customers' websites and thus hosting from home was not (IMHO) a viable option for him.