Probably will need to breakout into multiple issues.... but referenced is a page of most of the competitors in this space.
Per our many discussions and emails, I think we need to find the sweet spot between these hosted, front end only services and a service like Pantheon.
In looking at these other services, I think an entry price point of $20/mo or $200/yr would be competetive with music focused services such as Hostbaby and Bandzoogle. As we can't initially compete on features / design options, I'm not sure we could start any higher (most musicians/end users care about price and don't understand/care about open source) - but we could obviously upsell w/ additional features/customer suport, custom design/dev, and of course dedicated VPS! The $20/mo price point would also be around the same level as Drupal Gardens most popular plan.