+1 for Github Pages (https://pages.github.com/)- you can also use the online GUI to write code and it has syntax highlighting and tag closing features. Free for anyone and also gets the students a little familiar with Github. An account is required (free). Set up is slightly complex, but the linked documentation makes it fairly simple. Certainly no more complex than setting up an FTP client (which isn't necessary when working with Github). Projects host sites and blogs entirely from Github, so this should meet your requirements.
I'd also recommend JSBin (http://jsbin.com/) - at the very least, it is a good way to get started. The editor simulates working in separate files. Pages are set to not be indexed by robots (and I don't think this can overridden w/o some hacking- JS & new meta tag) but in every other way are accessible by anyone for viewing as webpages. I've found the uptime to be 100% (compared to Google Drive, which is always down when I actually need it). Great quick and easy way to get started- no account even needed! However, accounts are free. JSBin is great for setting up templates that students can then remix/adapt (e.g. http://output.jsbin.com/paruxu) and even move over to other hosted options later.