Try a different angle; assume you can get decent (redundant) connectivity to one provider and thus almost as reliable as if you're sitting in their core network. If you still require multihoming, don't your arguments implicitly disqualify your upstream as a hosting-provider too (regardless of them being multihomed and/or peering at any tier)? Who can then be trusted to run hosting-operations? Only multihomed as'es with no downstreams?
Ok, 3 meters Ethernet from core of good network is enough to be technically stable. But still there is management questions because of connectivity from only one upstream and can't establish private (commerce) peerings. P.S. About DNS, many clients really want to have own DNS, more of that, domain is not the only hosting, often there is a lot of corporate and/or private subdomains, that's why people don't want to lose their DNS control. -- WBR, Max Tulyev (MT6561-RIPE, 2:463/253@FIDO)