It is the same model that Heroku has, but for php instead of ruby. Since Heroku 
just sold to Salesforce for 200+ million( 
http://techcrunch.com/2010/12/08/breaking-salesforce-buys-heroku-for-212-million-in-cash/
 ), they are probably banking that there are more php people than ruby. 

As far as adding extra libraries, it is the age old discussion of 
"infrastructuture as a service" (IaaS) vs "platform as a service" (PaaS). 

It is a valid model.

Ragi

> Date: Mon, 10 Jan 2011 17:52:44 -0800
> From: David Kaiser <dkai...@cdk.com>
> Subject: [LinuxUsers] PhpFog
> To: SoCal LUG Users List <linuxusers@socallinux.org>
> Message-ID: <4d2bb7ec.3030...@cdk.com>
> Content-Type: text/plain; charset=ISO-8859-1; format=flowed
> 
> I saw someone talking about this on twitter today.
> 
> http://www.phpfog.com/    "You can create a new site in seconds. You do 
> not even need to know how to code."
> 
> (Not sure if that's a good thing or not.)
> 
> 
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