When it comes to computers, I've always liked to set up all the details myself, hence why I switched to Linux. Unfortunately, I can't afford to buy a computer to use as a server, and every ISP in my area is very unreliable.
Using my own box with a reliable ISP would definitely be preferable to using a webhost, but short of that, I think Linode is definitely the way to go. In my limited experience with webhosts, Linode offers the best deal:
1. Separate from other servers on the 'node (not really, but so far a VM has made it separate enough)
2. No lag. The AJAX shell lags quite a bit, but ssh from either Putty (Windows ssh client) or from the shell in my Linux install works fast.
3. I really like being able to use another distro. I don't really like any of the distros offered by Linode, so being able to use another is great! I haven't prepared my distro yet, but once I do, I'll use it to replace the distro currently on the Linode
