I've had 1and1 for over 6 years without a problem. They warn you no to do constant database hits, like you would encounter if you would setup your own ad-server, ajax chat, or whatnot, not that I've tried to test their limits or anything. I imagine some IM'ers might come into problems.
I have also had clients who've used Godaddy and came into problems with hackers taking advantage of, what we could surmise, to be their server configuration.
Another client used fatcow and the page load times were herendous when using Drupal. Also, a few years back I was going to transfer the few sites I had to Justhost but ended up transfering the one domain back when I saw how slow their server response times were. I actually paid them the non-refundable registration fees and bolted after about a week, it was so bad. They even offered to give me a further discount on the hosting I purchased, even though I bought it on a discount/promo rate to begin with.
You pretty much get what you pay for when trying to get "cheap" hosting. If you want to pay a few $ a month less, it usually bites you in the ass. The reviews out there don't help either. There is always a ton of reviews that this or that is horrible and go with this, but for the most part I think it's just IM SEO and companies putting bad reviews out there just to keep pace with everyone else. Plus with the amount of people purchasing domains and hosting, you will always have a small percentage, though a good amount of people complaining. about this or that.