Hosting is anything but a one size fits all situation. Sites which demand the highest performance will certainly benefit from customized backend architecture and tuning. For the large majority of less demanding sites, there is the spectrum from the few dollars per month shared managed hosting to the VPS (virtual private server).
At Urban Insight we've found that some Drupal sites are a good fit with hosting on Rackspace Cloud Sites. One requirement of ours is automated backups, which Rackspace Cloud Sites does not provide. Rackspace does provide some help with this in the form of scripts that can be used for backups, but you need to do the setup yourself, and one feature we wanted was lacking. What follows is a quick overview of setting up a Drupal site on Rackspace Cloud Sites with an emphasis on backups and how we added the missing backup feature we wanted, rotating backups.