I recently activated quota on my slicehost slice and it was quite simple and fast to do. The only disadvantage is that I needed to set quota on the only filesystem I had, which is /. If there is a choice then it is advisable to set quota on non-root filesystem such as /home, /var etc. The primary reason for this is that while performing the quota check the filesystem needs to be mounted read-only temporarily by the quotacheck utility. Since the root filesystem can not be mounted read-only while the system is running we need to do a force quota check on the system which might result in in-accurate figures and can cause corruption to the quota files.
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