Rackspace has folks that know how to fix a complicated issue on RHEL stack at 3am, which is nice. And, unlike a cheap host who has an SLA that guarantees 100% uptime but only refunds you for time lost, Rackspace's SLA incentivizes them to fix things ASAP. Things like a dedicated box having a hardware failure will be restored in an hour and they credit you 5% of your monthly fee for every hour over that. Or 5% for each 30 minutes of downtime due to data center issues (power, network, HVAC, etc). And they do make good on it.
Rackers are a smart bunch, their first-level chat support is great for the million minor issues I need solved. ("We've got a noisy neighbor, can you check it out?", "Can you move this VM to a new host?", etc.)
That's 10 seconds of divided attention required from me vs 10 minutes of dedicated attention for a phone call.