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You care about your customers? You should care about their privacy. Self hosted is the way to go. Using good (secure) software.
For summer-hosting it probably doesn't matters. But summer is over.
There will always be another summer, best be prepare
winter is coming
Most hosting companies have servers and know how to install, configure and update stuff. For them the tradeoff is different to other companies - there's no value in someone else hosting and looking after their stuff because it's what they do all day.
Couple this with low margins, especially in low end hosting and the fact that hosting billing systems need to connect to a lot of other sensitive systems.