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I don't believe there is a large market for generic, preconfigured Drupal sites. People choose Drupal because they can configure it to do exactly what they need. If they didn't need that power, they'd probably go with Wordpress or Google Sites.

For "Hosted" Drupal to really take off, it needs to be preconfigured to do something awesome. It needs to provide out-of-the-box functionality that meets the requirements of a niche market. Libraries, online courses, Digg clones.. Those are a few that come to mind. There's potentially endless niches that could be filled, given the breadth of modules available. The trick is figuring out which ones will bring in lots of customers willing to pay enough to make it profitable.

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