Site hosting in Google Drive:

Create a folder, then go back to the main folder, right click on the new folder and select "Share" then "Share:" then change the permissions from Private to "Public on the web"

When you open the folder, look at the URL. This one is:
https://drive.google.com/?tab=co&authuser=0#folders/0B0ap0WDOII5mbjdwajNBMlRoZUU

Notice that last crazy part after the "#folders/" part. In this folder it's 0B0ap0WDOII5mbjdwajNBMlRoZUU

That is the folders ID which is used to access it via the new hosting service. Start with the following URL, and add that folder ID:
https://googledrive.com/host/

This site is:
https://googledrive.com/host/0B0ap0WDOII5mbjdwajNBMlRoZUU/

That is the easy part. The tricky part is putting files in the folder that will show up on the new site. As it is, with no files, it will just show a file listing with nothing listed. Even if you add documents, they will not show up at the googledrive.com url unless they are of the correct type. In this case, you need to make plain text, HTML files.

The easiest way to do that is to make the files locally on your own computer using the .html extension after the file name, then upload them to google drive. If you attempt to edit the files as Google documents, they will be changed from .html files to .html.gdoc files and will no longer appear.

If you install the Google Drive program on your PC or MAC, it will automatically upload anything you put in the local Google Drive folder on your computer to Google Drive. Keeping and editing your web files inside the public folder on your local Google Drive folder is an easy and quick way to work.
Every once in a while, when you try to save a document, it will fail and say that another process has the document in use. Just make sure you don't have it open somewhere else, wait a minute and try to save again. I believe this is caused by the program re-syncing, but could be wrong.

And it really is a web site. You can have any sort of static file, including JavaScript, images, etc... The links are relative to the base URL with the actual file name of the document appended. For example, here is page2.html and an image:

which is the logo from my web site: the MassMind (which is not hosted on google drive... yet...)

If you are away from your computer, you can use an app like ShiftEdit.net to access and edit the files without changing their type. This can also be set as the default in Google Drive for opening that file type. ShiftEdit has come a long way. Here is the setup:

There is a "Live View" you can get on the right; click the little double left arrow at the top of the bar at the right edge, then hit the "play" button to load the current document at the Web URL you setup.

There is also a wysiwyg edit mode (it's the tiny box with the tree in it called "Design mode") and it will "reformat" your HTML if you use it, but for most users, especially those not really used to HTML, it's probably best. 

See also: