UPDATEAs you can see, this blog post is more than a year old. Since then Webfaction's servers performance has improved considerably. Their support is also much more pleasant to deal with so today I would consider them a pretty decent hoster.
There are lots of great, professional hosting companies out there. Most of them are qualified for what they do and provides exactly the service you're paying for.
WebFaction is not one of them.
The question is what can you expect for $8.50 per month plus VAT? Maybe not a whole lot, and maybe I'm expecting to much. When I signed up, it was to host my GtkImageView project which I'm still keeping at them, but I'm getting increasingly frustrated with them and will migrate before the year runs out if time permits.
What is promised on their site is the ability to run Trac and Subversion which is exactly what I need. Though when it takes over ten seconds to load a single page, thanks to congestion on their servers and overselling, then that is not ok! It is worse than ok because it gives the impression that something should work decently when in reality it sucks majorly. If you don't believe me, then try checking out GtkImageView using Subversion. It is sloooooow.
In the future, I will likely move GtkImageView to some other hosting provider. Possibly to GNOME:s infrastructure if they want to host it. I think they can do a much better job than me, because dealing with hosting related issues is much more work than it seems. Or maybe to Google Code, fast and efficient.
Anyway, I sincerely want to anti-recommend WebFaction. You will be disappointed.