It all boils down to what you want to use it for.
A cheap VPS plan will be no more powerful than an average shared hosting plan. Though it will cost you alot more.
If you have a site that is too large for a shared hosting plan then you're going to have to shell out for something more powerful.
A dedicated server can be had for £20 per month now with a 2.0GHz CPU, 1GB Ram, 250GB HDD.. that is a better spec than a VPS at the same price would be.
The industry seems to be moving away from shared hosting plans, some medium sized blogs are outgrowing the average plan and seem to be moving to either VPS or dedicated.
With the prices of some dedicated servers, VPS servers are becoming very expensive for what they are.



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