Malicious traffic doesn't make routers burst into flame. Customers get compromised on a daily basis at any large provider due to bad SSH passwords or WordPress

Malicious traffic doesn't make routers burst into flame. Customers get compromised on a daily basis at any large provider due to bad SSH passwords or WordPress vulnerabilities or whatever. Assuming the virtualization system is trustworthy (which it is), that's not a problem. Assuming it's not trustworthy, they shouldn't be running a virtual hosting company and letting random strangers sign up in the first place!