I think it depends on timing, myself. I got my reseller from a new company that's less than 2 months old. He was looking to host sites in order to boost his reputation, so he was basically giving them away below cost. The offer I got has already expired, and nobody else is going to be able to get on at this price. That suits me just fine =) It's a co-located machine, good specs and on a good NAP with only afew dozen active resellers and less than 100 sites hosted. It's a lot faster than my old hosting account (bought from a reseller) was and plesk is a nice addition (Cpanel is good too, tho).
There is a negative side to it, reliability. So far, so good... but there's no way to know if that'll keep up. But I maintain a current backup of all my sites and their databases, so if worse comes to worse I can move with little hassle (my domains are registered seperately, so changing their A records is a piece of cake).
Personally... I think it's about knowing the risks and managing them to your tolerance level. I worked with an ISP once that once had both of their main file servers die at the same time... some problem with their RAID controllers. The real problem, they were using one to backup the other.
About a thousand customers lost everything. Prior to that, they were charging a lot of money and had good service... But it only takes one slip, and no company is immune to that.
I've been considering getting a shared co-loc. I have an ISP here that will co-loc for $200 a month. Share it with 4 others, that's $50 per. I could do a lot with that.
I've also considered going the high-end reseller route, getting like 5 co-locs, and getting the resellers to pay for the first 4 leaving an entire machine for my own enjoyment. LOL. But that's risky, you know... and I'm a fairly risk adverse guy. =)