Virtualization is "leaky", there are esoteric attacks against other guests on the same host that allow attackers to obtain encryption keys. Last time I checked, the mitigation strategy was to move to dedicated hardware.
I doubt dedicated microservers will be competetive with VPS for a while yet because you can't oversell them.
But the "hard part" is not having the HW, but keeping it online 24/7. Geez, I don't even have DSL at home (long story)
With linode and others I can reinstall at the click of a button, I get a dedicated IP, etc
It may be easy depending on your situation, still, VPSs seems to have more advantages.
https://www.ovh.co.uk/dedicated_servers/kimsufi.xml
Hosted in the USA or France, prices from £8.99 a month ($12?) for an Atom server with 2GB of RAM.