20-40Mbps is slow? since when ??
Slow to me would be in the 1-2Mbps range (basically typical broadband upload speeds). Quick examination does not reveal any obvious charge per bits or anything so perhaps it is flat rate which would be even more amazing..
I have no idea as to the quality of rackspace's cloud etc, never having used it myself. For now I am still happy with my $200/mo co-location at a local data center with my 1U server for my own needs(cost is for co-lo and 100Mbps bandwidth/power only, I provided the server with quad core 16GB and 3.6TB usable RAID 10). Price isn't too cheap from a home user perspective but given the bandwidth and flexibility it's a good deal. Far cheaper than cloud for sure, I'd wager at least 50% perhaps as high as 80% over time, and that's just a single server, imagine if I had any actual purchasing power(as a consumer).