I would find a new home for your account...
This is a typical "get what your pay for" issue. As is often the case today, we see a large number of upstart hosts offering services well below the actual costs of providing them. This is because most clients never get near these unrealistic limits. When a client starts to create some traffic, the host either gives you your walking papers or imposes limits like this.
About your next option "virtual" server: Is it a virtual server as Apache understands it (one physical server, one Apache instance responding to different domain names) or a virtual machine (a physical server devided into comparments).
In the first case each server can go upto the peak performance of the physical machine, provided of course, the other virtual servers are idle. In the second case each virtual machine is capped.
Dedicated servers (one physical server for you alone) is not that expensive these days.