Is bandwidth still relevant for web hosting?

The Numix Project received some web love lately, mentioned in last Sunday's Linux Action Show web episode, and later on It's F.O.S.S and probably elsewhere, for their announcement to release their own Linux distribution. As a result, their website is now down, with the server returning 500:

mariosz@super-mario:~$ curl -I
HTTP/1.0 500 Internal Server Error

...and displaying the message "Bandwidth Limit Exceeded". I would have guessed that with everything-as-a-service and the whole Cloud #!, bandwidth consumtion would have already become irrelevant.

I mean, there's enough BW to feed our amplification attacks ( 400Gbps on CloudFlare, 350Gbps on OVH), but not enough to host our websites? Does that not call for a revision of the model?

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