This is not accurate. There are many VPS's which are cheaper, many of which have much greater capacity for the money. Some are fly-by-night scams. Others have several years of stability with good support. Check forums and VPS review sites to find the best match.

That said, I have nothing against prgmr or linode and would use them if I needed a super-reliable VPS. (My main VPS is Linode, my secondary is with Kerplunc Hosting)