Secondly, Dreamhost does provide VPSes with root access as well as web hosting and domain reg.
Thirdly, VPS isn't always the right solution. You have to account for time and willingness to do the sysadmin work -- instead of spending the effort on, say, programming or marketting.
Not everybody wants to spend several extra hours up front setting up and securing a server for a simple website or webapp.
And then patching it regularly and worrying about all sorts of things that may not be related to your goal in the slightest.
With most (read:good) VPS offerings the support guys won't have access to your VPS password (root, etc) and so from that perspective this would be safer and more secure for the OP. Shared hosting, by it's nature, holds a much higher chance of the hosting company holding your password in the clear/decryptable state.
My apologies if I wasn't clear in my original reply.
Dreamhost is fine for what it offers. People hopefully don't think they can really run something big and serious on $9/mo, but it's a good easy out for people who just want some web space.
Sure, I totally understand that this is over-kill if you are just running a personal blog - but then that's what wordpress.com etc are for. I'm working on the assumption that most people here on HN are either running a startup, a public facing project or building their personal brand -- all of which IMHO warrant setting things up properly.
There's of course, the added reward of having learned and accomplished something new.
Anyone who is the slightest bit technical would gain a lot from managing a VPS for their site. Even if you just want to host a bunch of wordpress blogs, or even static files.
Things like Exim and Postfix are non-trivial to setup correctly and very easy to screw up the configs, at least in my experience; though most of the time that I've tried to configure them I was trying to get them to do non-standard things (like redirect all outgoing emails to non-whitelisted -- through a pattern/regex -- email addresses to a specific mailbox).
The lowest tier server at Linode is $19/month (see http://vb.ly/linode) and will easily host plenty of virtual host based sites - although you could also check SliceHost or RackSpace Cloud Servers, etc.
Learning to run a simple server is really rewarding and you get to own root and run the box the way you want to.
Full disclosure: the link above has my referral code in it - it doesn't effect the cost of Linode's plans to you but if you do sign up you'll cover my hosting for a month. I hope people are ok with that.