Why the World Needs Another Git Repository Hosting Service

A single price point would be less confusing, but I don't really understand the appeal. Anyone who doesn't trust github and/or needs that level of secrecy will be willing to shell out the $10 a month for a dedicated instance that they can install git on themselves.

In short, I don't think you can be competitive with github because I think the frictional market you're trying to target doesn't exist in the capacity that you would like to think it does.

Not necessarily a reason to avoid the niche, but the reasons you listed to enter aren't very good (namely, too expensive for lots of small projects) as BitBucket solves that problem.

Never ever ever ever compete on price.