Actually, I can think of one or two providers that... at least used to let you do ZIPs and so on, but one it'd be kinda rude unless I let the guy know you were gonna use it and the other one keeps moving around. Unfortunately ill****inghostit.com shut down, but there are a kerjillion more like it if you look. Anything offering space over, say, 8MB is probably going to allow ZIPs.
But, well, Swooh's an amateur project. It's rather a lot like getting a free ticket to an elementary school play and then *****ing because the acting's wooden and the main character just peed himself out of cue. If you're surprised that it doesn't stack up to what people who actually really know what they're doing can do, well, it's probably for the best that you don't have webspace anyway. Nothing inherently wrong with the service as a tertiary file repository or quick Saturday night entertainment when you've got nothing better immediately on hand (in the different cases), but if you're relying on it you've got more underlying problems than crashy servers.
What, exactly, do you need it for anyway? If it's HLP-related, you can probably finagle a spot on the Gamespy servers. If it's of interest to anyone on the forum, half the people here have extra server space or their own/corporate server. If it's porn, it always has a home on my setup. So, specify.