The hostel You decide to run a site on 'shared' hosting (e.g. dreamhost, 1&1, godaddy (shudder), etc.) because it looks really cheap and they list so many "unlimited" things. The good: It's surprisingly pretty cozy for your startup wordpress blog about fish, although at that point you start wondering why you didn't just get a wordpress.com account instead, but you justify it by saying you were able to put your custom…
The thing is, the price difference between this and a vps is too dramatic. For example, I can get a Lunarpages basic hosting, with "Unlimited" Bandwidth and "Unlimited" Storage for $4.99/mo with support for rails apps and python (not django however). Not to mention a free domain name. However the cheapest linode vps is $19.99/mo. I would LOVE to have a vps to play around on, I would have so much use for it and yet I'…
The real difference is not in price; it's that in shared hosting you don't get the option and associated responsibility of managing your software stack; in VPS you do.