It was more of a comparison of the two extreme ends of the spectrum. Total hardware control vs. no hardware control. You're absolutely right that companies like iweb and softlayer offer great intermediate approaches. Personally, I have some great experience with softlayer but didn't want to make the article that long by including a third option/analysis :-).

Even still though, comparable hardware on softlayer's pricing looks like it's about $659/month. After 3 months it approaches a similar (but not identical) cost to the colo option.