I'm a little curious about how much space a reseller would need. Granted I know its all relative to how big their sites are but is it really viable for a reseller to get a plan that only offers 300 to 400 mb of space?

I've been seeing a lot of hosts offering reseller plans that offer a small amount of storage space. Are these more popular than say a 1 or 2 GIG plan?

Don't forget that not everyone who purchases a reseller account will actually resell. Some might want the extra features (eg. personal nameservers, multiple domain hosting, dedicated IPs,WHM) you normally don't get with a single virtual hosting account.

Another reason are the "1st time-reseller" who are just starting out and not looking for a lot of customers. They are safe in the knowledge that almost all hosts offer seamless upgrading to the next plan up should they become more successful.

From experience, I would say there is a 50:50 split (half go for the smallest plan, half go for larger plans)