Hmm, but my point is that you shouldn't suffer because of other instances...
BUT, it really depends on what you call "suffering" - if you do the calculations, a "fair share" of 16 2.5GHz CPU cores divided among 15 instances gives you just about a single-core 2.5GHz processor, which, in itself is not a terribly fast server. 1024 instances are even more cramped... As for other resources, like disk and net I/O - same thing, you are in line for your 1/15th (or 1/20th even) cut of the whole pie. Be it all MySQL databases or net streaming, it is not a fast server. Nor it should be at that price.
UNLESS other instances are not doing much...
If the whole reason you went for a cheap VPS was because you counted on it being underused then there it's a problem... I went there because I am fairly positive it will handle the load even if it's fully used. Sure, I'm going to get my money's worth but if Linode finds it abusive, oh well, I'll upgrade or leave, depending.
Sorry to come off like that, though, I'm actually a nice guy
Art