Chad was obviously on a shared or VPS service before he moved to the dedicated server. Hosting companies almost always disallow chat scripts in a shared/VPS environment because they are worried about resource usage. What if 1000 people logged onto the chat script at once? The server would be maintaining 1000 concurrent connections that could consume resources that are supposed to be allocated to other VPS containers and other shared sites. Additionally, the hosting company doesn't have the resources to monitor and control Chad's chat scripts.
Having a dedicated server was most likely one of Chad's few options because now he can do whatever the hell he wants with it! If it gets overloaded it doesn't affect any other customers, only MacInsiders.
I myself had to go through the same experience and now manage a dedicated server with about 10 websites and an Icecast server for London Tap House's online live DJ streams. This wasn't obviously possible with a VPS or shared hosting.
End result is that the original hosting company could've possible kept Chad as a customer if they had dedicated server options available. If not, then MacInsiders has simply outgrown the old hosting company.
Hope this clears up any questions as to why the Chat was a no-no for the old hosting company in the first place.
PS: Let me know if you ever need a hand, Chad. VPS/Dedicated server technology is one of my specialty jobs.