Have seen the prices for virtual web hosting these days?
At Godaddy.com, you can now get 200gigs of disk space and 2terabytes of transfer for $15/month… no setup fees, no contracts… In fact, for the $15/month… you also get an SSL certificate, your choice of Windows or Linux, and all the addons you need… including SQL, Rails hosting, etc… they’ll even throw in a domain name for 2 bucks!
For that much disk and transfer, I can’t think why you’d want to do dedicated hosting anymore… wow!