We have had great success with the NEC 9100 after Toshiba went down the drain. For a very small office, we have found Univerge Blue to be a good fit. While hosted, it works (at least in our experience) and the apps provide the customers many option when they can't work from the office.
My experience has been that hosted or on-prem are good to have in the kit and a good sale is one in which the customer gets what they need.
One thing I have discovered with hosted is that while the MRC is nice, we still have to earn it through helping customers with administration, app use, and thinking out of the box for some things just like an on-prem system. I know a competitor that just sells the hosted, sits back, collects MRC, and does as little as possible to help a customer. We use that as an example for what we don't want to be.
