I don't see any serious Hosting competition with GoDaddy?
Their hosting packages are actually pretty expensive once you compare price to features. No mention of what Control Panel is provided either.
Right now they have their "Web presence" as a Registrar going for them and are coasting on that. Won't be long I figure, before people start posting about their experiences with GoDaddy Hosting. My experienced opinion is it will start out at 50/50, but probably start to lean towards bad, once people gain experience with the service.
Much like what happened to NetSol when the Domain name Registration became de-regulated and opened up. The
Netcraft article mentioned above even states, "NSI remains the largest domain registrar" even though they still charge $35.00 yr. for Domain registrations. Lots of stories on NSI, about their bad service and under-handed methods and even at 3 or 4 times the price of most other Registrars, still number one. And still lots of business for lots of other Registrars.
I'm not saying any Registrar that gets into the Hosting business will be as bad, as NSI is as Registrar, only that there are so many different Market segments available that even today's startup Hosting companies have a good shot at being profitable.