If their software was all available and open source, I could host their software and my repositories on an $11/month Rackspace virtual machine, and still have about 7 gigabytes left over (or more realistically just stick it on a vhost on some machine I've already got on the internet and host it essentially for free).
This is the brilliance of Github. They have found a way to sell storage at several orders of magnitude over the going rate--all because they have coupled it with some attractive proprietary software. Their value is entirely in that proprietary software.
Huh? My $7/month plan comes with 600+MB of storage, and my job's $50/month plan comes with 6GB. Where are you getting these numbers?
Oh, we can. We just haven't needed to yet.
What would be nice on these open source web front-end for git is decentralized pull/merge requests, I don't know if there is one which does that yet (like you can follow someone with another Status.net install on identi.ca for instance, you could issue pull/merge requests from any "nodes"). Also, this would kind of make a lot of sense for a dvcs.
More likely though other providers would spring up and undercut their pricing but not invest in development.