These questions comes up every ones in a while. It’s very easy to think “hey, 500 GB of disk space, 5 TB bandwidth, now I can start my own YouTube, $9.95 /month”.
Do you think that Google, YouTube or FaceBook would spend hundreds of thousands of dollars on data centers and web servers when they could just put it on DreamHost for only $9.95 per month?
No, they would not do that. Because when you sign up with DreamHost you get access to a shared server. That means that you, and maybe hundreds of other customers uses the same server. If one of them would use enormous amounts of bandwidth and even more important, CPU resources, all sites on that server would get slow.
DreamHost is a great host for typical personal web sites, personal blogs, a personal photo gallery, email and so on. It’s however not a great host for resellers, file hosting sites and similar.