drmike,
I'd appreciate the chance to defend our usage of E3 processors if you're willing to take the time to consider my points.
The first, and arguably most important, thing in my view is that the E3s offer excellent performance. Not to diss E5s, but the entire E3 series simply kicks any E5's ass in terms of single-threaded performance. It's what they were designed for. We utilize this performance to match our target audience, which is game server and performance consumers. The ones that need the clock speed and performance the E3s supply.
The second thing I'd like to bring up is that they're cost-effective. They're easy to buy, easy to deploy, and use much less power than most E5-based setups. This allows for a higher density and more physical servers per rack, which is also arguably important to almost any hosting provider. I can also attest to the fact that a host doesn't need to oversell to make the investment worth it; we can easily meet our intended ROI and still support a decent level of service without overselling of RAM, CPU, or I/O.
Before you think I'm trying to discredit your entire argument, I should throw in that I agree that the VPS and hosting industry in general is filled with dishonest hosts and "experts" who are completely blinded by money, money, money. But users have to be on the lookout for those rare gems that are honest and open about their business, and supply what they say they're going to supply every time. When I think of a good VPS provider, only a few names come to mind. But they're there, they're around, and they're known by the community as a whole. I suppose the base message here is that you shouldn't throw out the entire batch because of a few bad eggs.
Just my thoughts. Typed out really quick, so sorry if it doesn't make much sense.