Globally I agree with this expression, I used during some months when going from a reseller plan to a dedicated server to get as cheap as possible the server and I personnaly went to a host who's prices were higher but where the servers were good. Luck also plays a bit. You can get hosted by a cheap host company and have some good hosting, but if it goes wrong don't be surprised.
Also avoid webhost companies who give hosting for cheap prices and with unlimited space and bandwidth. Usually there is a limit somewhere written in their tos, and they take some client unfriendly actions sometimes. Unlimited Bandwidth cost a lot and even that has a limit.
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