it was the practice, but with law suits and the like, it’s not likely anymore. I agree that this can happen, but this is no longer, or a very, very rare practice.
Here’s the interesting thing though, one popular site rates other hosts including the host they are hosted by, and the outright winner is the host they use, there’s even a promotional link. These sites are, however, few and far between and best avoided. Affiliation with a host on a site meant to be objective is unlikely, but nothing to stop a user from stating their positive experience with one host over another. Webhostingtalk.com is generally a good site where genuine users rate and review their hosts and other host experiences. Some are artifical posts, but you spot those a mile away when the host intervenes and asks for evidence of the suggestion that service was atrocious.
I don’t think the replies are out of context, I think rephrasing the post as you did makes it seem clearer, but still suggests a degree of hysteria from past practices which really do not exist anymore, except for low brow hosts run by jonny-no-body in his bedroom while he munches on a pack of doritos waiting for muppet a to enter his contract