Usman Asar

Tarek,

It would  be much useful, if you mention number of users concurrent and possible activities (Like quizzes, forum posts etc), as moodle can be installed on 512MB RAM, 2GB H/ and 20% of 1 core CPU without issues, the performance factor depends upon how many and what!

Tina, so far only possible solution is looking into Moodle's registered sites of schools/universities. Even 95% of them haven't been designed to the extent where one can actually get an idea from them as mostly are using default themes. It's so far only few of those who are directly responsible for Moodle's at their respective institutes coming out with Themes which they eventually let it out in public as well. Few themes are exception though like Essential, Elegance, and I believe Richard's themes are designed for Moodle community only as well.

Worked fine for me on IIS, Had  you upgraded your bootstrap as well? though shouldn't directly be linked to BS's update, but just in case.
Try deleting cache for theme and see if works.

3.0.1 is tested and working All OK, but for convenience of your mind you can wait for a week before updating.

regarding upgrade from, then you can directly upgrade to 3.x.x from any version above 2.2.x so 2.7 isnt an issue

as for Elegance, I do recommend upgrading Bootstrap plug-in before upgrading Elegance as new elegance built for 2.9 on wards requires that, also there will be slight change in interface so be ready for that, and yes that has been tested thoroughly by many people here for compatibility with Moodle 3.x

I know iPage having issues regarding install, though they are cheap hosting but also retain this in their quality of service they provide.

I have tested some 17 different shared hosting through my time with Moodle some did install Moodle, some even didn't so managed to create a list on my blog for those considering shared hosting as their starting point here. you can check out the list and see if something suits you in terms of pricing.