In most of life people seem to be interested in getting the most popular brand names of things like cars, clothes, food and more. The brand itself is often the selling point, instead of the actual product. It's not difficult to understand why people are applying this same logic to their web hosting needs. It would make sense that the biggest hosting companies in the world would have more experience, be more organized, and that would some times lead to a more qualified and better overall experience, right? On occasion you will find this to be the case, but often in web hosting the smaller company may be a better fit.
What you need to consider is that large hosting companies may get 100 or more new customers every day while a small company may only get 1 or 2. What does this mean to you? While a small company will never be able to match the big company in terms of sheer capabilities they do have something that the bigger companies don't - the need for each and every customer.
Since larger companies don't have to be as concerned about each customer they don't often pay as much attention to each one. Smaller companies, who rely on the business, need every customer to stay and be happy to stay in business. They often don't have an advertising budget and rely on happy users to spread the word. So while getting bigger can make the host more money they will most likely lose closeness they once enjoyed.
The question comes down to if a smaller hosting company can offer something that a large one cannot. Not if you're just looking for bells and whistles with your hosting, but if first rate, personal service is what you are after then smaller companies are perfect. Every customer may mean more money, but they also mean less time available to spend with each customer. So smaller companies have that advantage, time.
Louis writes about http://www.buyhttp.com/reseller_hosting.html and other related topics.