podz - thems fighting words.... 1&1 isn't holding anyone hostage... in fact, they give you the freedom to choose the admin tool you do want... unlike other CP's that come with other hosts. I've been using 1&1 for awhile now and am quite happy with it.... I've had less problems with them than I ve seen others around here.
Using a "missing" feature is a poor excuse to not use a host. While we are at it, why don't we just blast all the host that don't allow you to install WP via Fantastico and leave them simply because they don't offer it built-in. Please, I thought you were better than that.
At any rate, it's possible to create a folder, upload phpMyAdmin, set the appropriate config settings (and upload it too) and do what you need. I do this all the time.