Last year I signed up for a Dreamhost account. I used a coupon code so the price wasn't bad, and their offering is very competitive in many ways. However, the past year has been very disappointing to me. I was hosting several websites there and on one occasion the service was totally shut down for several days. Frankly, I was absolutely floored that they would allow something to happen. I was able to transfer the more important sites off to another host (one that I manage myself), so the damage to me personally was minimal.
Besides that nightmare, I feel that the overall service quality is not good enough for my needs. I'm sure its good enough for many, but I'm not happy with the performance of their machines or their bandwidth. On the flip side, I'm not having very much fun transferring my remaining sites away from Dreamhost, but unless I want to stay with them forever (which I don't) I have to do it sometime, and I might as well do it now.
What do you think of dreamhost? For the money, I agree, its not bad. But if I had the choice to pay more for better service, I would.