I don't know why people keep portraying this as a contest between hosting stuff on someone's service with all the weird terms and conditions and running your own server with you being responsible for absolutely everything from the (virtual) motherboard upwards. There are other options.
I remember looking into VPS hosting after deciding to move away from fairly simple static hosting, and after realising that I didn't want the hassle of having to deal with SSH port-scanning and the accompanying attacks and the like (it was a surprise that they left such issues to the average user), I ended up going with a shared hosting provider who gives SSH access, provides a reasonable OS distribution, and lets you install your own software. From that point, you can host repositories fairly easily if you can follow the instructions for your DVCS project of choice.
What hosting (and service) providers are missing, not just in this case but in the area of social networks and other services with a tendency to cultivate dominant providers, is the opportunity to offer convenient but interoperable services to a wider audience. Everyone wants to own the whole cake, no matter how small, instead of having a larger slice of a larger cake, which means that everyone has to watch as the behemoths take all the cake.