Ask HN: Virtualized cloud computing?

I searched HN but couldn't find an answer to this question: has anyone found a hosting service that offers a virtual private server (VPS) running on a cloud? I ask because most cloud computing plans seem to run about $70 per month, but surely they could be virtualized to allow multiple users to share one slice.

I did find this:

http://vexxhost.com/dedicatedservers.htm

http://vexxhost.com/cloud_hosting/pricing

Maybe there is room for a startup to resell cloud computing at a more affordable rate. I realize I'm glossing over the technical details, but have run my own linux instances on Linode/TekTonic and they have been generally too much work to set up and too vulnerable to hacking. I'm more interested in thinking about what's possible. I need a preinstalled LAMP server with shell access that can scale indefinitely, starting at ~$10-20/mo. Right now I'm going through a reseller account for $18/mo but sometimes they don't answer their support tickets and I worry about scalability.