I have been hosting many Rails applications in many different "SHARED" Hostings. and all I can say is that the best of them is Rails Playground...
Here are my reasons:
1. Uptime is very good.
05:38:15 up 108 days, 9:56, 7 users, load average: 0.46, 0.46, 0.45
2. Load is very Low
Load average: 0.46, 0.46, 0.45
for 2 x dual core cpus, this load is Awesome. The maximum load I have seen is like 1.9
3. Service is excellent
Every email I send I get the answer right back, with a good solution and help.
4. I asked for Git support
and I got it, they installed git right away.
5. FAST Hardware
in my rails application I get between 100 to 200 Req/sec using a single mongrel. I even get near results using FCGI !!! of course my app uses a LOT of caching, as well, using rails 2.0 edge from trunk. you might not get same results...
6. Fast connection
They have resonably fast connections... From the the other side of the world (Japan, Thailand, Malaysia) I get real good speed.
7. Free 2 mongrel Instances
I get 2 mongrel for the developer plan.
8. Free 1GB subversion repository
if i had to pay for http://svnrepository.com/ it would cost another 5 USD month.
9. All newer gems
On my machine, 76 gems installed. well updated.
SVNrepository.com is a real good choice to pay if you need more space to host many applications and more support.
So, for for the newbie and junior Programmer, RailsPlayground is definitely worth it for the "price".
Disclaimer :
IT IS JUST MY PERSONAL OPINION, for a shared Hosting I don't guarantee you will get the same service as I get. you might not get same results as I get... basically, you might not be lucky as i am. :)
NOTE:
If you have a critical application I do recommend to host on AMAZON EC2, or get your own Server Stack or Clusters.