Not sure why so funny.. It's a very common mistake due to the term virtual private server and the fact you get root access that a VPS is left to believe it is a mini dedicated server.
I think he was referring to this (silly) statement:
You can't really call whatever they offer a VPS since the CPU is shared between all users
Anyone who knows...well...anything, about VPS technology would know thats a crazy statement. He's implying that a "real" vps gets its own dedicated CPU.
Lets set a few things straight for those who arent fully versed on what a VPS is:
1 - There are two main types of VPS offerings. One uses system-level virtualization (OpenVZ & Virtuozzo), the others use para-virtualization (e.g KVM and Xen).
2. System-Level virtualization provides slightly more in the way of CPU power due to lower overheads, however its considered to be second rate due to it not being 'real virtualization...its essentially 'virtual-virtualization' in that the individual VPS files simply reside in a directory on a server, and the server essentially emulates another operating system. The other big issue here is that most hosts using this will oversell to the hills, hence why its so cheap.
3. Para-virtualization gives you full isolation and works at a hardware level, it essentially splits the resources up, and doesn't allow overselling quite so easily, and generally degrades the system a lot, so not many hosts bother. Para also has the benefit of working with both *nix and Windows operating systems due to it being completely isolated.
So to clarify:
No VPS gets a 'dedicated' CPU, you either get a allocation and limit, or a fixed allocation of CPU resources. You can set a VPS account to have its own core(s), however if you were to seriously allocate an entire CPU, the server would have a maximum of 4 clients, and cost tens of thousands of dollars - so nobody does it.