I appreciate your honesty :)
The ultimate responsibilty for one's site doesnt rest with the host, though. In fact, it doesnt really rest on the application.
You know that ive said it before -- even under the most ideal of conditions 777 is unsafe.
Ill give you a real world example.
Lunarpages, who is no longer my host, had the last time I checked, an ungodly amount of boxes (30+). On those boxes, they probably had 100-200 customers. 100-200 customers only serving web sites isnt really alot, when youre looking at RAM, CPU speed, etc..
When it becomes alot is when youre looking at "monitoring" what goes on. And honestly, what typically goes on, is this sort of crap. There are plenty of *NIX apps for checking changes to core files, etc/passwd, anything inside /bin, etc..
Let one luser upload a malicious file thats writes to all the 777 files ... guess what, 9.99/10 times its not seen, because the system files would never have those wide open permissions.
A VERY simple fix for hosts and some do use it, is to run a quick cron checking perms and reset them if any 777's are found.
I am a firm believer in the idea that there ought to be a requirement for noobs to learn what it takes, NOT just to have a web site or a blog, but to be a responsible web master/mistress. Far too many people throw up sites without asking the important questions, and they make it harder on those of us that do act responsibly.
On the other hand, software developers know that noobs are using their software. So you code accordingly.