Keep in kind a managed VPS plan from Linode means no Cpanel or fancy control panel so everything needs to be done via the command line. Perfect if you want to better understand Linux and learn command line commands. The backup service is a separate offering that's $5 per month and I highly recommend it as you'll most likely destroy a few VM instances before you get the hang of how to configure things like server requests and email.
From my experience Linode is definitely one of the best and cheap. It's perfect bridging hosting between shared hosting and expensive cloud based dedicated VM hosting like EC2. Rackspace is also pretty good, I have friends who swear by them but can't say anything about them really as I've never used them.