The reason I will never ensorse a budget host is simple: I believe that you get what you pay for.
$10 a month for a big chunk of diskspace and a big chunk of bandwidth is just fine, but something has to give. The provider has to make a profit somewhere, and that usually implies packing far too many users on a server, resulting in poor quality of service.
Now, I'm not saying that all budget hosts are bad, I'm just noting a general trend.
My own site was with two budget hosts in the past, and the experience was horrid. I now run my own servers, avoiding the whole mess completely (though Flare is still on FutureQuest 'cause we need to test on Perl 5.005

).