A few years ago we built a small business website solution based on wordpress called flare9.com. I am updating the brand and revamping the whole backend and will be re-launching the service as page.ly this summer. The service lets you create your own website, on your own domain name, with email service.
It is aimed at the startup/micro business that needs something professional looking, fast, without spending a ton of money.
It will also be available for white label soon after launch.. where resellers may set up their own site builder service.