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I've been running a Kbin server on a service called elest.io for around a week.
Had a few teething troubles configuring caching, but that should work out of the box now.
If you can point & click on stuff in a semi-sensible manner then you could run your own instance for yourself, a specific community/sub.
I found I had problems initially until I properly sorted out caching. Then I threw a few hundred visitors at it and it's been fine. $10 would be OK for small communities I think, but you're right in that big communities will need big servers.