I use shared hosting and have done for 3 years.IMHO, if you're half serious about setting up websites, don't even think of ever using a shared host... ever. The costs now are negligible annually (maybe $100-140 difference?) and the performance and reliability upgrade is worth far more than that piddling number.
It serves a purpose and generally I have had no complaints.
The cost difference you stated seems wildly optimistic to me.
I pay less than £50 per year for shared hosting.
I have yet to see anyone offering VPS hosting for just over £100 a year.