Yon,
I don't believe that folks are asking for a solution (today) that solves problems that can occur at an virtual hosting ISP that allows scripting/programming of some sort. I don't believe that people are asking for a solution (today) that yields a machine that doesn't require monitoring or a sysadmin.
I think the question is, can AOLserver/ACS be implemented in a way where the "typical, industry standard, expected" virtual hosting problems ARE the MOST likely problems that will occur. In other words, denial of service to the entire system via a script that's gone skew should be caught reasonably soon by a monitor or sysadmin just as it would (have to be?) if you were using Apache or IIS.
But accessing/altering data or crashing other people's AOLserver or PG instances just won't do at all, and requiring extensive sysadminning to set the whole thing up won't be economical either.
I think the real problem is chicken and egg. When the ACS has enough compelling applications out of the box to make it interesting to the $30 per month crowd, virtual hosting will appear. Oddly, the ACS right now is mainly compelling to the $300/$3000 per month and the $3 per month crowds. The former gets colocated, the latter gets DSL.