Yes... yes, it is a real thing. DigitalOcean only took 55 seconds (or so) to get my Node.js server up and running with Ghost preinstalled.
Click "Ghost 0.4.0 on Ubuntu..." and start Droplet, 55 seconds later you have a running Ubuntu server with root access. I've started using the $5/month server to see if that's enough for me, and so far so good.
Currently, I use Modulus.io for a few projects and they have simple billing, project creation, terminal deployment, and pretty much anything else. The problem is that it is about three times the price at $15/month ($0.02/hour) and only allow MongoDB. It's worked nicely for my needs and apps for months now and will continue to host some of my apps, but I'll be moving some of my apps and sites over to DigitalOcean this coming month.