Does reseller hosting offer us a better solution? Well, it depends on people. If we are a person who wants freedom of this and that, we might not be able to survive under reseller hosting.
Reseller hosting is good in the sense that it's more organized as everything is setup for us by our hosting provider.
We are given the WHM (Web Host Manager) and with WHM we can customize the hosting plans (webspace, bandwidth and etc.) for our resold accounts.
A resold account is just like any other shared hosting account, with a cPanel as its control panel under Linux platform.
We can sell our resold accounts at our own price and some hosting providers offer the private label reseller plan.
In other words, our resold clients will only know us as their hosting provider and won't figure out us are reselling unless we tell them when they ask us. With reseller hosting, we are bound to what the hosting provider offers us, especially the softwares and applications.
Reseller hosting might not suit yus if we want freedom. However, it's useful if clients do not mind what the hosting providers offer them particularly in terms of applications.
Imagine we don't have to get ourself in with all the fuss of installing and configuring this and that. All we do is via the control panel provided to us, then we can start reselling already.
Reseller hosting is never a bad option and would still be a competitive option towards VPS. It is indeed reliable and useful when we think of the user friendliness it provides to those who are not so familiar with hosting related stuff.