For what its worth, I stopped using Rackspace (specifically Rackspacecloud) for 2 reasons:
1. The control panel experience was incredibly bad. Incredibly. Large chunk of features simply didn't work and consistently gave errors (I opened numerous tickets, some were claimed to be fixed but later the errors came back). It's unacceptably slow, to the order of 2-5 seconds of loading anything. And the overall flow and experience is just bad (it took far too many clicks to do something like change a DNS entry).
For a while my startup persisted with using Rackspace just because we already had some infrastructure on it. Once an opportunity to move off came along, I jumped on it (it's now hosted on DotCloud).
2. I had some bizarre experience with getting questioned on the phone while signing up for a new account (setting up a personal account to toy around with vs my other business account). I was questioned about all sorts of things like what I will be using it for, what I'm working on, various private details that I was unwilling to give out. As long as I'm not doing anything illegal or against your ToS, it's none of Rackspace's business what I'm going to run on my VPS.
Now I use Linode for all my personal VPS needs and I love it. The control panel is super snappy, the user experience is simple and efficient, and they don't ask me questions they shouldn't be asking. Also when I report a problem, they actually fix it and are very open and transparent about everything.
Since then, I've recommended Linode to at least a dozen people specifically against Rackspace. Yes, I may be a squeaky wheel, but I believe fixing the control panel (and customer privacy policies) should be Rackspace's #1 priority, especially given all the other feedback you're getting inline with this. Each person who posted here could represent a dozen customers down the line.