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BinaryLane are one of the only providers I know of that allow this... It's really tricky to do right as you can end up with imbalanced nodes because inevitably there's someone that wants a large amount of RAM with a very small amount of disk space. Even the larger providers (DigitalOcean, Vultr, Linode, etc) with all their resources and large number of servers still don't allow customization of their plans. Probably a lot of providers don't want to have to deal with live migration of VPSes.
Not necessarily the case. Proxmox makes it easy and vmware providers have no issue with it, IME.
.. is a more probable reason.