Ubuntu HWE (Hardware Enablement) Kernel (a part of the LTS Enablement Stack) makes very good sense to Precise instances running in the cloud.
Currently the latest release kernel is Raring 3.8.0 (based on upstream 3.8.8). It is NOT available in Control Panel anyway, I think Digital Ocean needs to somehow enable it for users (I don't think this is how KVM VPS should work...).
What's more, Ksplice just announced support for HWE Raring kernel on Precise (12.04) which is very important (uptime, availability and security) for LTS instances in the cloud. If DO makes it available, LTS users will be able to use Ksplice to keep the running kernel up-to-date.