.host can be an excellent name, especially if you are targeting by geography. Imagine newyork.host or london.host. Or if you are a software-specific hosting provider (wordpress.host). It is catchy, premium in nature and gets you easier search engine ranking, if you are doing it right. The price, consequently, comes with it. It isn't for everyone, but for those with deeper marketing pockets for premium names, why not.
A regular name goes for $50, which isn't that bad (in order to secure your existing brand name).