Wow, mod parent up, up, up. I was going to post my $.02 (perl pun) but you certainly said it better than I.
In my $firm, we have a cluster of webservers and that allows scalability (as you described above) rather than having another tire of hardware (other than the Db) for the business logic. This works very well for us even for very high load.
Nothing is too wonderful to be true
-- Michael Faraday
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