I don't understand what the point of being able to have unlimited subdomains is. Why do you need them?

Well, If you have lots of space, you can host others by your subdomain, which I do. More subdomains = more sites to host.

I also use them for subsections of my site. So more subdomains means I can have extra sites without having to buy new domains for every site i'm gonna make in the future.

I have a short domain - sidez.net :)

I like subdomains because of the shorter URL's

The real purpose behind subdomains is that you can have more than one website or website section being hosted by different servers. Larger corporations usually have www.domain.com on one server, then something.domain.com on another server and anotherthing.domain.com on yet another server. Sometimes those servers are even located in different data centers, cities or even countries.

For the small guys, subdomains are nothing more than just a way to separate areas or sections of a website to make it easier for users to navigate.

I use subdomains to shorten URLs and make them easier to remember. Instead of typing in the full, complex path to my support desk, they just go to supportdesk.spurvus.com. Much better.

it helps if you have a lot of traffic.
say you have a community.
instead of making the people go to your site and find the forums, or making them go www.yoursite.com/forum/index=.php?
you could just make it forum.yoursite.com

much more easier.
And also, you can host a few friends at your address.
yourfriend.yoursite.com

See also the thread Many subdomains: what for? (http://www.webhostingtalk.com/showthread.php?threadid=28639)

I just think they look a lot better than yourname.com/whatever, IMO. :)

Am glad this question was asked! Didn't realize the possibility about the subdomains being on different servers!