Excuse my ignorance but what is a dedicated server? What is it and what benefits does it give me? also how much does such a thing cost?
Do individual drivers on here buy one and why would they need to do so?

A dedicated server;

In terms of software, all it does is the serving - i.e. theres no graphics, just a basic window and thats about it. This is free. You can run this on almost any machine (both windows and linux (via wine) - I've not yet tried macs [as I dont have one]). The advantage is that you don't need a very powerful machine (as low as 200-300MHz can run a dedi server).

In terms of hardware, a dedicated server is usually a pc, or rackmountable server, that just sits online and serves things; websites, LFS games, you name it. Note: this is not required to run a "dedicated LFS server", you could run it on your normal PC.

In your example a dedicated server is a piece of software (ofcourse you need hardware as well ) designed for a specific task, like hosting LFS games for instance. In other words, it basically runs LFS on the server without displaying the game itself, it's only task is to host the games.
There's no graphics and you can't play LFS with it, it just serves the games. The benefit (for game hosts) would be much less use of system resources as it doesn't need to show graphics, sound, etc.
You probably don't need it like most of us here.

Will there ever be a linux server?

Well, the LFS Dedi can probably be run via Wine, a windows/directX emulator for Linux - so I guess yes is the answer.

Which is easily solved by setting up a cronjob to do that.

Is the whole point of having a dedicated server to make money out of people wanting to use a particular program with others?
Who supplies the dedicated servers, BT?