Looks like the price point for commodity VPS is continuing to come south. Today Joyent released that you can get one of their “accelerators” starting at $45/mo. Rackforce has their entry level at $49/mo, and 1and1 slides in their entry at $29/mo.
You can do your own compare to see what they’re offering, but it’s pretty clear that Joyent is damned proud of their Solaris+ZFS setup, as they seem to have the least amount of disk and transfer available. Rackforce talks about the virtual to physical ratio, but 1and1 doesn’t say a thing.
As far as I can see, any small company hosting their own hardware is probably going to need a darned good business reason. The cost of hosting your own setup is really getting a competitor.