Sorry to be the negative-nancy, but did Nagios (specifically XI) suddenly become hard or something? Maybe I'm just an old neckbeard by now, but what's with this trend with cloud-hosted middle-man applications (read: expensive web 2.0 frontends) for standard software? If you can't install and configure your own server monitoring, what are you doing hosting your own servers? Am I missing something obvious here?
Though on one hand I'm inclined to agree with you regarding Nagios, on the other hand I disagree. What you're missing is the concept of developer empowerment. I am a sysadmin / operations engineer, and one trend I've noticed over the course of the past ten years is one toward developers venturing further and further into what could be labeled "traditional" systems administration. Do not underestimate developer demand…
Fixed costs like an employee are scary even though services cost more and security isn't even a real concern.