Burstable memory might be a scam, and the same goes for guaranteed memory too, after all you are only guaranteed that you can allocate it, not that it won't be constantly swapping.
Because OpenVZ does not guarantee where any memory resides, the only issue at stake is performance. If a system is stretched too far it will start swapping and performance will suffer. A simple way to avoid this is to have a combined guaranteed ram lower than the installed memory and no burst, but this has its own problem.
Processes typically allocate more memory than they use, the unused memory doesn't take any system resources, but it does reduce from the pool of potential memory available. Just like a reservation at a restaurant, once the booking has been made the slot can't be given to anyone else, but the table is only used later. If you look at /proc/user_beancounters privvmpages shows you how much memory you have allocated, and oomguarpages shows how much of that is actually being used and thus taking up any resources on the system, there is typically quite a large difference between the two.
On a dedicated system this isn't a problem because of swap, you can allocate all of ram+swap and depending on your usage you might just be making the most the most of your ram, there is no swappiness incurred if processes are just being inefficient. Java VMs are notorious for allocating 500MB of memory just to run a program that only uses 40MB at peak.
With OpenVZ there is no swap, so this is the role of burst, without it someone will probably only be able to use 70% of the memory they are paying for. That is very unhelpful and they will need a bigger plan than they should as a result. With a little burst they can probably use all their memory. If their actual used memory is monitored and kept in check then everyone gets a better deal and all without affecting performance.
So in summary, only rely on guaranteed memory, but if you aren't offered any burst you won't be able to use all your guaranteed - so make sure you have some. Check your user_beancounters to make sure you never actually use it (oomguarpages maxheld should be under the limit) and you will be fine.
If you find the server doesn't perform well that is a separate issue, if your hosting provider doesn't keep an eye on performance get a new one.
Jim