We're getting VPS service so cheap because they don't have a huge staff, I'd wager. After all, they hired on who they needed as engineers - they don't need a huge (outsourced?) technical support department.
If there were managed hosting, then I could see the justification for a huge staff that does nothing but deal with little requests like, "We need 50 email users, here are their names, please report when its done." Or "We need an asterisk server setup, plz."
But, hey, that's what rackspace is for.

And their 300 a month price.