Lx is a scalable and customizable VLIW processor technology platform designed by Hewlett-Packard and STMicroelectronics that allows variations in instruction issue width, the number and capabilities of structures and the processor instruction set. For Lx we developed the architecture and software from the beginning to support both scalability (variable numbers of identical processing resources) and customizability (special purpose resources). In this paper we consider the following issues. When is customization or scaling beneficial? How can one determine the right degree of customization or scaling for a particular application domain? What architectural compromises were made in the Lx project to contain the complexity inherent in a customizable and scalable processor family? The experiments described in the paper show that specialization for an application domain is effective, yielding large gains in price/performance ratio. We also show how scaling machine resources scales performance, although not uniformly across all applications. Finally we show that customization on an application-by-application basis is today still very dangerous and much remains to be done for it to become a viable solution.