Yes, we had a server at ThePlanet for about $160/month and were looking for something cheaper. Went for a Level 3 VPS account with Hostgator, about $49/month. Ran some basic unix benchmarks and the performance was comparable.
They use a "Virtuozzo" control panel. I got the impression a lot of their tech support wasn't that familiar with it. The real show stopper was memory problems. We were running Apache/PHP/MySQL and when we added some Python stuff for Mailman, got memory faults -- which I thought they would have some swap capability.
The VM Hostgator uses does not support any type of swap, or burst access. I learned that from other postings. Their are VMs that do allow it. So..... if you can live in limited memory you should be fine!