He can use more than his 1/8 share of CPU time but others can't use his 1/8 share.
A VPS host shouldn't be asking or telling customers to manage their own CPU resources, period; that's the point of a VPS in the first place. It's a virtual private server. It should be isolated in a fashion such that even if I'm using 100% CPU 24/7, it doesn't affect anybody else. If a host told me to "use less CPU" I'd tell them to "acquire better virtualization" and find a better host. Ridiculous.
Most shared providers will charge you more if you use more CPU or require that you upgrade to a dedicated server. I'm pretty sure that any hosting company will be happy to lose you as a customer if your usage degrades the other users performance.
There's probably 64 or 128 VPS on one machine.
> and I'm always using 1/8 of CPU time
There's your problem right there. You're believing what you're told by someone selling shared access to a finite resource.
I think rimu was right to limit his CPU share. It was unprofessional of them to root his box and shutdown apache, but it seems he was a user with an history of high CPU utilization.
If there are 8 VPS on a machine and I'm always using 1/8 of CPU time, nobody else can't have access to this 1/8 share. I know that 1/8 of the CPU share "belongs" to me but it's a shared box and it's just being a good neighbour. I appreciate it when I need to run a quick high-cpu on my VPS and I can use more than my 1/8 share of CPU.