Well, a Webfaction account is essentially a VPS with limited permissions and a bunch of stuff preinstalled, so what you can do with it depends on how well you use your RAM, bandwidth and disk space. A good thing about Webfaction is that the database server (Postrges or MySQL) and Nginx server don't add up to your total consumption, as they are shared by all accounts on a machine. Add to this that you can run memcached to lessen the burden of your app and something like Cloudflare as a CDN and your possibilities expand. Mezzanine-Webf does all these things (except for Cloudflare, that's handled at DNS level).
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