Thats true and it goes for dedicated servers and colo'd servers as well in some cases. The issue here isnt outrage about a host having access to your box, which

Thats true and it goes for dedicated servers and colo'd servers as well in some cases. The issue here isnt outrage about a host having access to your box, which almost all of them do anyways(IPMI, Root Disks, etc..) - but that they used his password to do it and without asking him.