Scott Guthrie's last blog post had details on Microsoft's new Azure websites. Some of the big improvements are a new shared tier hosting, A-Record support and Fast-CGI support.
One of the features I like is GitHub and CodePlex continuous integration support. He has some demonstrations on how you can push changes into your repository and they automatically get loaded onto the website.
I have avoided using Azure in the past because of price and a-record support, but now with the new pricing structure I will probably use Azure going forward for small sites.
Azure also supports PHP and Node.js applications. They even host Linux VMs if you need a Linux VM.