traditional web hosts provide a level of management that isn't present in VPSes. You may be able to get turnkey instances, but you still have to be responsible for managing them and maintaining them. Vs a traditional webhost where you don't have to worry about all that.

You can claim that its "outdated" and "akin to using tables for layout", but its also still a very valid workflow for a lot of people who don't want to be sysadmins in addition to developers