Hi,
I, too, have a shared hosting account with godaddy and I did all the steps you listed above, but I'm still getting the "Dataroot location is not secure" message during the install.
Specifically, I followed steps 5 and 6 and set up a moodle data subdirectory under the root of my website and created a virtual directory without anonymous access or directory browsing. I even browsed out to the subdirectory to test that it wasn't accessible and got the message "401 - Unauthorized: Access is denied due to invalid credentials."
The only thing different from the instructions is that the root of my website is in a subdirectory of the root -- D:\hosting\10150264\html\english_training_services\moodledata -- rather than in the root of the primary domain itself. I'm not sure that it matters, though, since I was able to run the installation from the other subdirectory under the root, per instruction 9.
Another thing may be that I'm trying to run the latest version, 2.4, although I'm wondering if that matters when it comes to testing if my data folder is accessible from a browser or not.
It makes me wonder how exactly the install tests whether a directory is or isn't accessible via the web. And it's unfortunate that the install imposes this requirement rather than allowing users to determine for themselves if they want to assume the risk of an "unsecure" data folder.
In any event, any guidance would be appreciated, and I'll be happy to provide more detail if necessary.