Definitely xhtml or html5 (for fancy stuff). I'd rather not assume people have a java plugin installed.
To be honest, html5 is amazing. It easy to port xhtml websites to html5 and additionally you get the new shiny html5 tags and features.
20 USD is fine but the package
http://www.serverlebanon.com/ is offering is not worth 2 USD a month even by Lebanese standards.
I'd rather it was local because I could pay cash. If not local, I'll have to pay with PIC.
I'll look for something local for the moment. This isn't really urgent because the website is still in development.
I'm currently learning some PHP and JS and I have some people who can help if I get stuck.