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Living in Las Vegas, I wouldn't get a VPS in Las Vegas. The data market isn't all that great in Las Vegas and the benefits of a local server don't seem to be there.
The thing is that half of the city uses the CenturyLink (Embarq) network for Internet access. When I do a tracrert to a Las Vegas host through CenturyLink I'm routed through San Jose. That being the case, CenturyLink subscribers should see better ping times to a server in San Jose than to a server in Las Vegas. You will also find a better VPS market in San Jose.
That said, I operate a voice server, which is extremely sensitive to ping times. My voice server is in Chicago and I see ping times at around 80ms from Las Vegas, which is satisfactory even for voice. Here is a ping from a Las Vegas CenturyLink DSL account to the Colocrossing data center in Chicago.
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