I agree. For most people, Slicehost or Heroku are plenty (Slicehost being cheaper, but less Rails focused). Another good name is Linode. I've read somewhere, that people found them to be better, performance-wise, than Slicehost.
Linode is awesome. The CPU power you get is crazy compared to other providers I've tried. They don't seem to overload their host boxes. I just ditched a $250/mo dedicated server and got everything running on a $40/mo Linode with no hassles.
