I plan to get their $19.95/mo account and try them out over Giftmas break. Since UML uses the Linux kernel for virtualization, I expect that there will be more CPU power to the virtual machines. I've used VMware for many years, and even on a dual PIV Xeon with 2GB of ram, 4 virtual machines bring the host machine to a crawl. Linode is claiming that 32 hosts can run on a dual processor Xeon with CPU time to spare.
I think that virtual machines are the way of the future for hosting. Most people don't use 100% of the machine's resources for their needs, and those few that do can just get normal machines to host from.