I've read that, and also the answer from Dreamhost:

http://blog.dreamhost.com/2008/01/10/rails-is-as-rails-does/

I'm on the Dreamhost side here. I am not making money here (sometimes I am, but certainly not with RoR. All the paid projects hosted here are PHP-based. e107 to be more accurate) so I'm not paying $240 a year just to have a website running RoR. Although I agree it's tempting, and a sweet solution for a lot of developers (who will learn a bit of server administration with that).

I am going to renew now my Dreamhost account for $120 a year. I can afford that for my personal projects.  I rather use some language that I'm not particularly fan of (PHP) and making it work in half the time I would take to deploy a Django/RoR application. And yes, since all my projects are small, this is priority to me. Which reminds me again that RoR and Django are not suitable for microprojects like mine. Thats the reason I've came up with Pungi.