I have been with GoDaddy for over 10 years now. I have quite a few domains registered with them and a CentOS 6 Linux VM, which I ssh into and do pretty much whatever I want. I haven't had any problems with them at all. Not to say that problems don't exist, just that it is possible to have a good experience with GoDaddy--I have also only called their support a couple times in the last 10 years, so that might be part of the reason for the lack of bad experiences.
I also agree about having hosting services with a separate provider for all of the reasons given here. Yea, I am breaking that rule, but the VM hosting was an afterthought and just something to play with.