hi Omer,
Does it make sense? Mate for $5.95 a month, I'm afraid it makes perfect sense. You're sharing a server with 10 000 friends... and Moodle is never going to like that. A VPS solution is likely to be a bit better, but I'd be wary of a hosting company that doesn't talk about what level of performance they'll guarantee for your slice, etc. Having a quick browse of their site, there are plenty of other things to be concerned about... like advertising that they offer PHP 5.0.4. Apart from being insufficient for Moodle 2.0 etc... it's 3 years old and subject to various security patches/updates.
It'll be dearer, but can I suggest you start at http://www.moodle.com/partners/list/ and find a place with the expertise to help you and with a commitment to the long term viability of our great project.
MC
Hardware and performance
Long load time for moodle on server
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