On one cheap Linode VPS instance I already have 5 websites hosted, plus a personal email server, plus several private git repositories, all for ~ $20 per month. I get my domains from other services, like namecheap.com; and good/cheap hosting for PHP stuff (and even Rails) can be found on DreamHost.com.
There really isn't any reason for anybody to use GoDaddy anymore, unless you're hunting for their coupons, but in this instance you really get what you pay for.
And more often than not the coupons are good for the first year only, and transferring after that year (for me anyways) is a bigger PITA than the coupon savings offered.
Right now I'm hosting with Chunkhost, it was their free beta period that got me off the crummy shared account I was on with GD. I could never go back, now.
There really isn't any reason for anybody to use GoDaddy anymore, unless you're hunting for their coupons, but in this instance you really get what you pay for.