Nate has a writeup explaining his choice of hosting providers. This seems to be an ongoing question with no right answer. As far as I can tell, if you don’t bitch about your web host, they’re probably doing a great job!
We’ll have to see what his experience is once they move to production.
My needs are a little different. I can handle the load of my product on a single box, at least for the forseeable future. What I can’t do is get failover on that single box. It’s amazing how expensive it is to go from one box to a load balanced pair of backends with a floating IP address. (I’ll save the topic for DNS load balancing for another post).