A few corrections.
Dreamhost isn't and wasn't ever cPanel. It got hot back in '01 / '02. The outages in 2004 weren't lengthy, were mostly DoS and got blown way out of proportion by people who thought $10/month was a kingly sum that entitled them to dedicated-server quality. The quality of Dreamhost's shared hosting hasn't really diminished over the years and it's still perfectly adequate for low traffic PHP or even Rails sites.
TextDrive by contrast was founded on the principle of combatting the race to the bottom by charging a fair price and offering unparalleled power and flexibility. This vision was sold to us by Dean Allen who had an enormously positive reputation as one of the very best early bloggers. Funding TextDrive with these lifetime accounts was not just us chumps buying into some bottom-feeders marketing scam. There was real intention and integrity behind this.
The problem was that they couldn't actually deliver this quality service despite charging a lot more for it. I mean there was flexibility (webmin instead of cpanel, etc), and TextDrive was the first shared host supporting Ruby on Rails (in fact it was the "official" rails host for a while), and they were always working on awesome new tech (huge Solaris boxes, ZFS, bla bla bla). But in the end, Jason Hoffman did not know how to build a stable hosting service.
Eventually after the Joyent acquisition/merger I think they figured out how to run a business, but it was our money that allowed them the time to learn how to do that. The actual experience of hosting with TextDrive was always shit, and it never cease to amaze me how many hours Jason Hoffman spent posting in the forums when there was obviously a lot of urgent work that needed to be done.
At some point in the early history, Dean Allen went dark and largely disappeared from public view. You'll notice that now Jason Hoffman is the Founder and there's no mention of Dean Allen, but if I recall, it was definitely a partnership, with Dean bringing the name recognition and web experience, and Jason providing the system architecture (business/technical co-founders if you will). I don't have any inside information about what happened there, but I do know that Jason Hoffman and Joyent burnt their bridge with me and I'll never trust anything they do.
If there's a class action lawsuit I'm in.