A VDS is more than simply a shared domain. Each VDS is independent of the other ones - you crash one VDS, the others keep on going. Each VDS has its own users, ftp, email, web mail, site stats, other applications, GUIs etc. The only difference between an IP based and name based VDS is that some plugins (OpenSSH, ColdFusion, maybe one more) that require an IP only work on the IP based VDS.
In theory, each VDS can have multiple domains, but this is not supported by the GUI/API and will require manual tweaking of files, and can lead to problems AND violate the EULA.
So you get 8 domains, about 40-50 applications each (plugins), unlimited email and ftp, and a total of 10 GB (my cost on the trafffic is $30 - my provider has expensive bandwidth, though high quality). I do not think this is overpriced.
At any rate, this is not a product for cost cutting. Both hardware and software are high quality, and all these applications for each end user require support overhead.
If you have the time, check it out. Somewhere on the site there is an open demo that shows the gui's. I think the URL is www.tryavds.com/demo.html
Try it and tell me if you think it is overpriced.