I am actually fascinated with this discussion. I've been following the industry for God knows how long and I have never seen an explanations of "unlimited" put quite in those terms of separating "quotas" from "hardware". I have seriously NEVER thought of it that way and it is somewhat of an eye-opener for me.
You didn't think we were really trying to sell infinite hard drives did you.
I offered up a little exercise to the critics so they can see unlimited with their own eyes. On your windows computer right click on C drive then Properties. Click on Quota tab. Click on show Quota Settings. What do you see? I have uploaded screen shots. Do you see the relationship between unlimited and quotas?
So you now see unlimited existing in Windows. Windows refers to it as "No Limit." This isn't new. In Linux unlimited exists when Quota = 0
"Limited" hosts have been doing this for years with email, databases, etc by removing the traditional quota. Wouldn't unlimited email, databases, and sites require unlimited space otherwise?
A hosting plan is simply a basket of hosting resources defined and limited by quota. The quota is created by the host. Remove the quota (the limit) from any one of those resources and that resource is now unlimited.
I have answered all of your other points in previous posts. Some are obfuscated by straw-men, red herrings, false analogies and other fallacious arguments and may be difficult to sort through
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