But for a starter ruby site (nano RAILS was hosted there for over a year!), it is hard to beat their price, and they do run quite nicely with fcgi. If you want to run multiple apps, using mongrel, then sure it is not for you.
Any way, to make a long story short, Dreamhost has finally decided to update the way you create codes for their Coupons.
So if you want to get started with a pretty good host, and need a new domain name, you can get that domain for free for the life of your account by using the code NANODOMAIN (plus you get the max $50 off, which is a nice chunk of change).
Or if you already have a domain, but want a unique IP, you can use NANOIP (and you also get $50 off).
Or you can take advantage of that last week to get $97 off with NANO97.