Telephone Guru, Your question might end up needing it's own topic started but there is only one scenario that I would even possibly consider a hosted PBX solution.

That being a very small start up company that wants to give the impression of being larger than they really are and where they have 2-5 people working from their home with no real office yet. This would allow them to have some of the functions a real PBX offers without the larger investment in equipment until they are ready for such a purchase or lease.