As a long time Engine Yard customer I can say $129 is a very good deal considering the level of support that brings you. We've run PMOG (http://pmog.com) on EngineYard from a small starting slice right up to a real application and I've found them to consistently be responsive, knowledgable and scale-able, if you see what I mean :)

I'd strongly recommend anyone checkout EY solo. Hearing about their plans flex, the ability to run with passenger and soon rack, should make you realise that they know how to handle Ruby.