I have had very few problems with them as a web host. Even with shell access though, using them as a development server is untenable, too many random slowdowns when SSH'd in.
I host my site and the websites of a dozen friends with my one Dreamhost account, which costs me ~$10 CDN a month.
I will probably renew in another 8 months when it comes up again.
"How many of you actually use more than 5% of the capacity they supposedly allocate you?"
I'm using over 5% of both, thanks to hosting a bunch of sites. As for "supposedly", you really can use all of that. They count on not everyone doing so (which is how they make money and can afford to charge as little as they do). If everyone used all their disk space and bandwidth, the rates would go up.