A few months ago, I was told by Rackspace that "We're not responsible for looking after your hardware" after they'd removed, and destroyed, a working hard drive from a dedicated server instead of replacing the disk that had failed, regardless of the price, all hosting is 'bargain basement quality', some are just more bargin than others =)

Isn't "looking after your hardware" exactly what they're responsible for? Why else are they being paid?

I know that rackspace isn't responsible for data loss caused by hardware failure or an accident on their part. A number of rackspace employees have told me (on irc) that I'm responsible for my own backups. Perhaps it was a misquote?

"We're sorry for the issues you've had with your server today, but we're not responsible for looking after your hardware."

A drive failed in a RAID1 array so I contacted their support to get broken the drive replaced, they removed the working drive and destoryed it then insisted it wasn't their fault, I even gave them the serial number of the failed drive before they removed it. I do have my own offsite backups of everything, but it was still annoying to have to restore the entire server

Although RackSpace is expensive I have never had anything but great support from them. I recommend you escalate your issue as this extremely out of line for them.

I have to agree on some counts. I see a lot of people get burned by companies every year or so - often when they sell and change owners - and then jump ship to just another random more-or-less anonymous webhost.

It's not so much about price as about legal status and especially that it's not a 1-man band operating a server out of their College dormroom - or residential internet. If you've a 50-man company hosting you, it's going to be more reliable in my opinion that if there's only 1 or 2 guys behind it.