Nice points there. Let me share what i feel about this.

We are into a hierarchy where every rank is important howseover big or small that may be. Like host is dependant on network provider and server provider, both of which may be same or different. Then reseller is dependant on host and hosted member is dependant on reseller. Thats one way of looking into the hierarchy. Seeing it another way, satisfied hosted members is what reseller depends on. Successful reseller is what host depends on and successful host is what server provider and network provider bank on. So, we are all into a symbiosis where each other's success is important and beneficial to our own existance.

Since reseller is providing a shared resource out of server, they are not in complete control of the server or environment. They themselves are dependant on host/server provider for certain problems requirring access to server. Having said that, if such a problem occurs, it is not isolated issue for that very reseller in most cases.

Now host may have to handle hundreds of clients, so having a reseller in place eases their support system also, because then they need to attend to the reseller who in turn handles those clients. In addition, should anything bad happen, it is reseller who is at risk because customers see reseller as the service provider. Having reseller in place, provides host a good channel to fill up their space in better possible manner. besides they do not have to run for clients or atleast this gets attended easily. In a way having a reseller is advantageous to the server provider.

Now how would customers benefit if they were to host with reseller rather than server provider directly? A few of you may argue it out but truth remains, resellers have much much better host-client interaction than server provider-client and also rapport. For sheer amount of work server provider needs to do, it is unreasonable to expect them to have time for this. Resellers have lesser responsibilities towards server maintenance and can easily use this to build up confidence and relatino with hosted clients. Over period of time resellers start providing multitude of services, something parent company would not be in position or may be charging for. This includes installing scripts, SEO, web designing and related. If not for free, atleast for cheap and then there is a community to develop and interact. So, reseller network in a way ends up in a closely knit community, something which parent host wouldn't have time and staff for. This is all general and not specific to any firm or reseller. Even from business standpoint, someone like me would wanna host with someone whom i can freely interact, seek support, and has lesser load to handle.

Just my opinion