I took a glance at the link, and that's not really ideal. I've used sshfs before, and it suspect that using rsync over sshfs will be very slow. I'm not so sure that rsync will be able to do partial file transfers either. I could be wrong about that, but I wouldn't count on it working 100%.
There are a few programs out there that are designed to backup files via ftp. They compare the timestamp and filesize and only transfer files if they've changed. This might be a better solution until dreamhost adds rsync support.
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