hmm because I need a place where they will let you downgrade because most hosting give like 1000gb transfer and like 120 HD and I only need like 350gb transfer and like 20 HD so basically I dont wanna pay for the stuff im not guna use
Usually their business model (as much as they want to deny it) is based upon overselling, if they sell you 1,000gb of transfer they're betting on you only using 300gb thus their pricing is set to make a profit on 300gb, most likely you aren't going to find any better prices by "reducing" your hardware.
you'll need more than 20 gig, that's nothing in the industry any more. A properly partitioned system should have at minimum 80 gig.
As far as why they do this? Probably because that's all they have to work with. Most won't charge you less for taking the lower road in this case, because it's MORE work for them to find the 20 gig hard drive and install it, then reinstall the OS.
As for the bandwidth, I agree, you're not going to find someone giving you less of a price for less. Those figures are pretty much industry standard. I doubt they're "overselling" by that much, but where DC's are concerned, it's not as much about overselling as managing properly.
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