Outsourcing Hosting Vs. Go-It-Alone? Which Way To Go

I am about to embark on a web project from home.

I have the dev machine and will need a database server and a web server (I may also want a middleware server but am undecided as of
yet).

I will be using Akamai for video.

I am trying to decide about using a hosted facility or not during development (probably a few months or so). Ultimately, the site will wind up at one due to support, back-up, load handling, etc. But, for now, I am wondering if it is the way to go?

I have looked at Dell's site. As I see it:

1) option one is to buy a 24U rack and 2 pizza-box style servers. Put it in my home for pre-release development then, when I am ready, move it to a hosted facility.

2) Option two is to rent server space at a hosted facility and upload changes accordingly.

The issues for me are - good hosted facilities are expensive and many of them don't allow
remote desktop to a server. On the flip side, I have found that some larger hosted facilities (where the site will ultimately end up) won't allow me to bring my own
hardware. So, once I buy the Dell gear, it will be pretty much useless once the site goes
to the hosted facility.

Regardless, I am leaning towards buying a rack and a few servers and having that level
of control over my hardware during development. Its an expensive initial investment but
I feel like it will save me money and headaches down the road? I'd be very interested in experienced advice along these lines.