What was the limiting factor on dedicated? CPU? ram? bandwidth?
Maybe you just had a really bad dedicated server deal? Were they reasonably priced?
Even VPSs are cheaper than Amazon.
I started out on VPSs and saved a lot moving to dedicated servers once it made sense to. For the dedi servers I use I don't have to pay for RAM monthly, and I get bandwidth at a good price.
The kind of money you're paying on servers is just obscene. It wouldn't matter if Reddit had the revenue of course...