* Layered Tech: $169 (2 TB/month)
* The Planet: $149 (1.5 TB/month)
* Superb Hosting: $119 (2 TB/month)
* Hostway: $99 (2 TB/month)
* Server Beach: $75 (1.2 TB/month)
* Cari.net: $60 (1.3 TB/month)
* Amazon EC2: $244.40
If a dedicated server dies, just spin up some VPSes while you order a new dedicated server or get it fixed :/ It's not a great problem for the rare hardware failure.
The dedicated servers I use get me 5TB transfer for around $100/month. That would cost me around $1,000 on Amazon.
In any event. You're wasting money. Reddit could easily be hosted for $3k/mo or so.