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The background mailouts are working just fine in most cases. They may seem to fail (you don’t get any messages in the time expected) when there aren’t many visits to the site. That’s the downside of using wp-cron. When testing, it’s always good to remove all possible failure points, so turning that off is a good idea. You can usually even keep it off in production as long as you have a small recipient list. I’ve seen lists of 100 recipients not cause much of an impact, but 400 can cause a server time-out.
Not allowing cronjobs seems like a petty thing to do. You should consider moving hosting company :).