(1) Yes, always "consider" it; whether to actually do it or not is up to you.
(2) You can get a pretty decent dedi at OVH within the $50-ish/month price range - not bad.
(3) I use it for Cavil, for hosting a website for someone else, for general file storage, as a proxy/VPN behind restrictive networks, for getting access to a Windows box (VM) from my phone, for hosting games (on and off, not 24/7/365), for my custom Cards Against Humanity fork, for music streaming to friends once or twice a month, and for development and learning.