I generally agree with this article, but ... Small Web applications and sites are single tenant. That means that one server hosts one application that serves just one person: you. I feel like people forgot that shared hosting exists (e.g. Dreamhost, or Nearly Free Speech). One computer can serve tons of websites! It can serve multiple Hacker News spikes at once. And the site doesn't even need to be in a virtual machi…
The biggest problem with shared hosting is security. It's common for everyone's processes to run as the same "www-data" user. It can be made secure, but it isn't common and most shared hosting is powered by off-the-shelf piles of shit like cPanel which are Swiss cheese when it comes to security.
Other than that, prefer zero-knowledge designs and you can often reduce to the danger of vandalism. Have a friendly hoster and/or backups for that case.