Just a few comments from my point of view:
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A hostee tries to leave the host, but the host won't transfer the name rights to the hostee.
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Not ALL hosts do this. It depends on the host you're dealing with. Personally, I have never come across this type of situation. It's best to ask these questions and reading the company's policies BEFORE signing up.
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It's better to have total ownership of the domain so that you can change hosts whenever you want.
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For some people this may be true, but other people do not want to deal with maintaining it, so they look for someone or a host to handle it for them. They say it's because they do not have the time (or patience) to deal with it.
Summary: Do some research first on ANY company you want to do business with, especially online....and then ASK MANY MANY questions before signing up