A little research showed that we don't have to setup a personal OpenID Server just to use personal webpage as an OpenID.
OpenID has delegation feature, explained here , which effectively allows you to use a personal URL as OpenID and yet use a bigger OpenID provider who can guarantee better availability of the service.
And if you don't like your current OpenID provider, or if they go out of business, you can always switch to a new one without having to change your OpenID registered with various services.
So, I used my existing account at www.myopenid.com to setup delegation from gurjeet.singh.im to myopenid.com hosted service.
I added these two lines to gurjeet.singh.im/index.html and was done!
Now my OpenID is gurjeet.singh.im, and I can use this as a login for any service that supports it.
OpenID++! Kudos to whoever first came up with the idea of OpenID!
Update June 15, 2012: Just 3 days after I implemented this, the technique has paid off! www.myopenid.com seems to be down today, I waited for about 3 hours for it to come back online. Finally I gave up and decided to switch my OpenID provider. I replaced the above mentioned 2 link tags with these two, to use www.blogspot.com as my OpenID provider:
... and my personal OpenID url gurjeet.singh.im is back online!