I'm very keen on public libraries. I'm fortunate in that our village has a community run one, there is the county one, and I can get to The British Library. Why do these entities exist? A real question - not rhetorical. Whatever the answer, I am sure the same mechanism could "pay for" public hosting.
The government funds some libraries, and for some publicly acceptable reason. That reason should apply to web infrastructure, and indeed the small web. Other libraries are community run. Again whatever motivates that probably applies to small web stuff.