I have to admit that I'm somewhat surprised at the pricing for the hosted version of Community Server. They seem to be ignoring individual users and small companies with their pricing. In my humble opinion, if they added a starter account for $5 or $10 per month, they could cater to the masses. That would be a small enough price jump for people to consider not going with free alternatives: WordPress, Flickr, and ProBoards. There is an obvious benefit to having blogs, forums, galleries, etc that share a common url and theme.
I definitely see the convenience hosted software packages have to offer, but man… when you have competitors offering similar services for free, it's hard for the "little guy" to justify signing up for $50 per month. But who knows… maybe Telligent just doesn't want to cater to that market.