I use the small glesys.com and pay for the box with a capped bandwidth.
If my blog or apps are slashdotted (or HNed or whatever we should call it nowadays) they just load slower, degrading gracefully, and never stop or return an error.
They used to have transfer based pricing but then moved to bandwidth based, reps said to simplify billing.
Their new KVM service gives you 1g burst and 100mbps average by default.
https://glesys.com/vps/pricing is very straightforward.
At my previous employer we migrated to them and were very happy with the VMware infra they provided.
