so you can get more that 500GB of space from a drive that only has 500GB of space.
you cant have unlimited space if the disc only has a 500GB LIMIT
Wasn't this already discussed in another thread? I seem to recall this exact same statement being made, as well as a reply from both myself and Collabora explaining the difference between 'unlimited' and the 500 GB hardware limitation you've provided.
In reply to the original question, a website hosting provider should not remove the quota limit with their reseller hosting packages, as doing so would require that the third-party
(the reseller) must create the same exact terms regarding the hosts unlimited policies, policies which the reseller is unlikely to abide by, resulting in abuse of both the server resources, as well as a severely overloaded server with hundreds upon hundreds of 'unlimited' accounts being managed by providers with no prior experience within the hosting industry, as well as little to no knowledge on the management of server resources, and how to allocate properly based on average account size and general usage.
So, although I am fully behind hosting providers that offer unlimited space and bandwidth, as long as it applies towards the lack of general quotas, and not a true implication of infinite space or bandwidth, I am entirely against the potential offering of unlimited reseller hosting services, and any host that is offering such services is likely (almost certainly) overselling their services on a massive scale.
In theory, unlimited resellers could technically exist. It just isn't very practical, and would be nearly impossible to properly manage and maintain, assuming the source/host even cares about maintaining their own services to begin with.
In short, hosting providers that offer reseller hosting plans with unlimited space or bandwidth should not be seen as a reliable solution for any serious individuals or businesses entering into the website hosting industry for the first time. If you happen to find a provider that is offering such services, expect to experience very slow performance on their network, as well as hundreds of restrictions and limitations inside of their terms of service. Not to mention the near certainty of hosting on a server that is severely overloaded.
It just isn't a wise move.