The great benefit of making our primary multi-user Unix login server a giant 112-core, 512 GB RAM server is that we don't have to really care what people do on it any more, unlike the days when it was a puny little Dell 1U basic rack server.
(It's still 1U. It's amazing what you can get into 1U these days. Also yes we have per-user resource limits for RAM and CPU usage, although they're pretty generous ones; you basically can have a more or less desktop-equivalent amount.)