I know that many potential customers are shocked with the generous allotment of space and bandwidth offered by DH. You must be thinking "This has got to be a joke, either the servers are slow as turtles or these guy's have a hidden catch." or "This must be a bait and suspend tactic!".
Well, so far, I'm on the 10th week of my plan and everything has been smooth save for a few days of the slashdot effect. I use a couple dozen GB of space, and usually about 50%-75% of my bandwidth allotment. Speeds are fantastic, almost always above 350KB/s downloading from the East Coast.
See, unlike hosts like SurpassHosting.com and HostICan.com, who oversell even more than DH, DH actually honors their agreement and as long as you're not hosting warez or using so much CPU that you crash the Apache service, you won't have your account kicked. At HostICan, two of my friends signed up for the unmetered package as a backup server and after mirroring around 50GB of data, their accounts were terminated because HostIcan's TOS does not allow use of their servers for "file storage". At SurpassHosting.com, I had an account and used it as a mirror server. After a slashdot effect, Surpass terminated my account because their TOS doesn't allow more than 30 simultaneous http connections. So unlike DreamHost, which used apache limits on my site during the slashdot to keep the apache service and my site alive, Surpass simply chooses to terminate any account that becomes a hassle to them. Their tech support is much much faster than DreamHost's, but they have absolutely no clue as to how to optimize apache service or setting up modules for apache to limit connections and etc... I suppose that their superb tech support respond time comes from the fact that they simply choose to kick away all users with serious challenges.
The bottom line: DreamHost oversells, but their servers can probably handle the load and their admins are knowledgeable enough to optimize stressed servers efficiently, thus, DreamHost honors their limits. Also, DreamHost is reducing the limits daily in an effort to reduce overselling, so in the future, server performance will only get better.
Share your opinions on whether Dreamhost is a good host or not!