Yeah,.for some reason when I read the pricing I read megabyte-month as gigabyte-month. Obviously that's not sustainable. $0.01 per megabyte-month would not be good with the 12GB I currently have on my Dreamhost account.

Then again, if Dreamhost does crack down on backups as they say they're going to, I will have to find something else eventually.

I also think you're understating the case of how bad Dreamhost's service has been in the last year or so. I'd say the service went from below average to extremely sucky and back to below average in terms of web server load averages and availability. The storage and bandwidth can't be beat, assuming they let you use them all, but the servers are WAAAY overloaded and that's before you hit CPU throttling.

[[email protected]:~/tonyc.org]
uptime
10:29:20 up 3 days, 21:48, 6 users, load average: 54.77, 46.33, 31.39

Yowza! That's pretty typical, not just a spike.