Not to mention, Rackspace charges you $120 per terabyte of data transfer, while you'll get several terabytes of transfer free/included when buying from Linode or most dedicated server resellers.
That seems like a hefty premium for...what? The Rackspace name? Is there any reason to believe that Rackspace has better uptime/reliability than Linode? Any reason to believe Rackspace has better hardware than Linode? Given that neither company — as with most cloud providers — provides any truly meaningful transparency, it's impossible to say.
For my money, I think I'd rather spend less of it, or spend the same amount and get more/redundant servers.
I'm genuinely struggling to understand the value of Rackspace.