Could you give a rough estimate of what kind of hardware specs a SN machine will need? The specs will of course affect the VPS prices, especially if you are going to go for good enough equipment (so it doesn't melt) and a reliable provider (that doesn't throttle you down).
Well, we'll have to find out in testnet.
All I can say: for the first testnet sessions it will possible to run a servicenode on your normal computer.
But if you run your servicenode on a server it will get a much better score.
One of the many things I'm currently working on is how this score will be derived.
Just as a reminder:
1) The seat is what enables you to even be considered for a reward.
2) But the score (actual performance of your servicenode) is what will ultimately determine the payment-schedule of your reward.
BTW, 2) is not so much about rewarding top servicenodes even more, but rather about punishing servicenodes that do a crappy job, like having timeouts, not being available (uptime), etc..