I need to introduce you to a site called http://lowendbox.com - where scriptkiddies, 12 year old "web hosts" (like, a web host run by a 12 year old) and just weird (sorry, but I just don't get the personality type) people seek out to spend as little money on VPS's - often debating the merits of switching from one to another in order to pay $3.50/m instead of $4.
They then try to eeek out every bit of performance they can from the accounts they "collect". It's a curious sub-culture.
That's a presomptuous (and unnecessarily aggressive) you are making here. I certainly don't want to pay more than 3 euros a month for the use I am making of my VPS (it's still very useful, don't be mistaken), and LowEndBox was incredibly useful in finding a good provider for that price range.
People certainly have different uses than you (and your expensive 100's of hosts), that doesn't make all of them script kiddies and 12 year old hosts.
I've found they're very useful for running scripts I wouldn't normally want to have an impact on my own production VPS. A few times I've had people asking to run a trial of a new webapp (forum system, blog, cms), and these work perfectly for the task.
Heh, that's not entirely untrue - the majority of people on lowendbox and lowendtalk seem to have some sort of strange fetish for running things on as little resources as possible. I've seen some people there that actually use the LEBs for things like cheaper redundant hosting, etc., but they're the exception.
They then try to eeek out every bit of performance they can from the accounts they "collect". It's a curious sub-culture.