This is a good article with a interesting point of view. I would simply add that sometimes a great product sitting in my development environment or hidden from the world is worthless. You have to consider even a minimal amount of effort in getting your viral marketing started. Hopefully the theory focused on by the article will save you tons in marketing expenses once it gets going.
My preference is either Dedicated or Custom Solution. When you're in the early phase VPS should do just fine for an affordable price. You can always upgrade with your provider and once the funding comes in move to a custom solution. Keep things in mind like how much access is needed to the server for custom application installation.
Good luck! If you have the luxury of not having to work, great otherwise you might want to add consulting in there in order to gain some real world experience while plugging those holes on your resume. If you can't find consulting work then transition some of that "brainstorming for project" into volunteer or internship work in a larger shop to gain experience. My philosophy is to use other company's time and money to gain experience and work on your own projects on the side.
If you do have an idea, don't wait for the straight face. Developing a prototype is fast and you can get something ready to show people your idea quickly. Get out there fast and often but the trick is to focus on obtaining funding if that is your ultimate goal, developing your idea can come after the initial money is in the bank but again that all depends on your financial needs.