Functionality in your case means a bunch of nice features, that in reality have nothing to do with the actual hosting. Features are great, but can be replicated by anyone. So I wouldn't talk to loudly about them.
Your arguments are so flawed. Anyone can replicate features? Anyone can buy a server from the same provider as someone else. I don't see what your point is there. Buying a server takes money and that's it - implementing features takes considerable time, effort and advanced knowledge.
That's almost preemptive to me. Again, just wait until you start getting clients, and they start hosting. Then we'll talk about ping.
Kalphiter has over 40 servers. You have 1. Not your room to talk.
I think you missed what I said about ping - which is that it's hardly related to how many people you're hosting. Again, I can't see what point you're trying to make here given that fact. Do you have some sort of evidence to cause you to believe ping goes up with the number of servers you host, or are you just making wild assumptions?
If ping goes up with the number of people on Kalph's server, if he shut them all down but one then I should get a nice 20ms from London right?