I have an account with Vultr simply to have the option for a $2.50 tier VM. If DigitalOcean offered this size, I'd close my Vultr account. See their specs below:

512 MB memory, 1 vCPU, 20 GB SSD, 500 GB transfer, $2.50/mo ($0.004/hr)

Maybe do like Vultr and add a 768MB of RAM Droplet.

I could definitely see a use case for "half everything" (including cost) :)

These numbers may not add up. Only DO knows. They should do the minimum and have 50+ plans ready. Stop limiting our choices! Have the $5 1GB ram with 1GB Disk space option and I will buy it :)

Because of the prices of RAM and consumer SSD's this pricing model doesn't make sense right now.
Putting an consumer SSD in a server and splitting it amongst it's users is cost effective.

The machine you describe would be ideal for most of our use cases I agree, but the economic reality of 2015 means that more ram would cost more money, and the reducing SSD space would not provide much savings.

dont forget guys thats ssd .........
convert it into ram
if ur using more than one server make a os that combines all them into one and run the ssd drives as a raid array and use as ram...
since this is a data centre isolating clients who knows how stuff is setup but with some tests and know how could have mint setups across it
eg raiding up ur ssd betwen servers using as ramdisk for pagefile speedup os etc
might even be tricks to share loading if there conections between servers are good enough

would be great if pricing and plans were more flexable
realy u should buy each peice separtly
ram has a price per block
cpu per cpu or of a measured loading over time
sdd per Gb

and there should be a teir program for quilty so people who need reliability dont get shifted around and thouse who dont get moved were suits systems
and should be a choice in types of systems get use of since different pcs and software work diferently on each other
and the bits u buy should be lockable or flexable and have setable caps on them to give you as much flexablitiy as posible
and there should be a free or cheap testing ground and download upload of data to trail everythink need

Also looking at this idea: https://digitalocean.uservoice.com/forums/136585-digitalocean/suggestions/3127077-extra-diskspace

There are clearly people who need more diskspace and some who need less, so easily something to work on to make everyone happy.

+1 to this I currently have close to 20 servers span up and the average SSD use on each of them is basically just the OS + the service that I run from them all.

I don't need 200+ GB of unused storage sitting across all those servers, but maybe it will force me into finding a way to use the space.

This fits my needs, as well. I don't need 20GB of storage space, but I do need 1GB of RAM in order to run, sometimes even install, certain processes. Increasing to the next higher package, multiple by many servers, really begins to add up the costs when I'm barely using the allotted storage space.

this would be a great idea... one use-case is an etcd cluster where the workers are outside the cluster... per the coreOS docs

I suggest the following. 50% CPU means if your setup supports it have shared CPU with other users so when your cloud is not under load a user can access more than the 50% - 10% CPU but under load only gets 50%-10% dedicated (guaranteed).

$3/mo - 256 MB RAM, 50% CPU, 10 GB SSD, 500 GB transfer
$1.5/mo - 128 MB RAM, 25% CPU, 5GB SSD, 300 GB transfer
$1/mo - 96 MB RAM, 10% CPU, 2.5GB SSD, 200 GB transfer
$10/yr - 64 MB RAM, 10% CPU, 2.5GB SSD, 200 GB transfer

This would be great for mini web servers only handling a html page or tiny .js page.

I get the suggestion for the micro... $2.5 for 1GB Ram, 5-10GB (?range?) SSD, 1 CPU, but you probably need to be clearer about the $5.