Earlier quoted context omitted.
What would be the advantage of such a service?
Compared with virtualization, it would be more secure. If a dedicated ARM (or Atom) microserver were competitive with mid-range VPS, people would buy it. Virtualization is "leaky", there are esoteric attacks against other guests on the same host that allow attackers to obtain encryption keys. Last time I checked, the mitigation strategy was to move to dedicated hardware. I doubt dedicated microservers will be compete…
But the "hard part" is not having the HW, but keeping it online 24/7. Geez, I don't even have DSL at home (long story)
With linode and others I can reinstall at the click of a button, I get a dedicated IP, etc
It may be easy depending on your situation, still, VPSs seems to have more advantages.