The section you quoted is for Dedicated Server hosting. Are you thinking of signing up for that? I'd guess that once you're on a dedicated server, if you request to be upgraded to their latest hardware platform, you'd incur that charge.
If you're getting a regular shared hosting plan, that clause does not apply.
What are [color=#CC0000]50DISK50[/color], [color=#CC0000]3DOM50[/color], and [color=#CC0000]1IP1DOM50[/color]?
They're Dreamhost coupons!