I'm a massive fan of Rackspace and I personally have a 1024MB Cloud Servers instance with them. In my opinion, they are both affordable and premium at the same time. While the managed service is still pretty expensive for me, I can do basic stuff myself by help of Google so I'm managing my own servers there.

This site is a collection of customer reviews of Rackspace, especially their cloud computing platform (Cloud Servers, Cloud Files, etc.). I'm abstracting each review found on the web in a few points so that you can digest more in less time.