Yeah, until these low-power computers improve a whole lot, I agree. I bought a few of those atoms to try 'em out, you know, people will pay a good bit more for their own dedicated server than they will for a VPS. Once you put it together, the atom, with a limit of 2GiB ram, draws around 50 watts under load. (I can only imagine most of that is power supply inefficiency and chipset badness) one of my 8 core low-power dual-opterons eats about 4x as much power, but I get 32GiB ram and many times the power of 4 puny atoms.

Until intel quits nerfing the atom (and maybe even then) virtualizing a big server is going to get you a whole lot more power for a whole lot less fuss.