Web hosting and DNS hosting are different things.

First, are you sure you are referring to your DNS hosting or the hosting that is your webspace?

If it is "DNS hosting" for sure, it is a total rip off, DNS hosting is included in that 7.45 on godaddy and most other registrars.

for web hosting on godaddy it's about $4/month (makes $48/year) for WEB hosting.(and again there are coupons that will save you about 25%.)
That makes your total(including everything) expenses on having an internet site about $50/year.

for choosing options,
again if you are sure it's DNS hosting, do not wait another second, park on Godaddy.

Also if you get your web hosting from godaddy, it will automatically set up your domain for you since you already have that domain on your account.