Well Phade is running off a dedicated server. I am sure the site creates alot of traffic, but it probably uses WAY more CPU power then most sites.
PHP is a dynamic uhhh web development scripting language
Everytime you look at a page, respond to someone, search for a video. The server has to dynamically create the page on the fly, which takes cpu power. Multiply that by thousands of times a day, you're looking at a hefty chunk of CPU time.
So phade is probably happy with his co-located remote server with a healthy pipe. If it works, just keep it.
~klinky