So, in the short-term, overselling is a great business strategy. Long-time its not a bad strategy either, IF you can keep those first-time customers.

The trouble is that its very hard for oversold hosts to retain customers long term because overselling eventually leads to overloading, which leads to lots of upset customers.

NOT overselling is more likely to attract customers who’ve been burned by oversellers, who are knowledgeable and serious, and want a host with whom they can actually feel safe. These types of customers make up a smaller segment, however, so its only natural that hosts who don’t oversell as much are smaller.

The advantage to NOT overselling is that, frankly, its so much easier from the perspective of a host. You don’t have to worry about servers getting overloaded, you have a much more loyal customer base, you are more likely to get referrals, you have fewer support requests, and overall, a lot less stress. These benefits trickle down to customers as well.

Also many the hosting reviews sites and top hosters are there because they pay to be just go to the review sites click on advertising see for your self or they just affiliate links and google adsense links crazy but true.

many unlimited space badwidth hosts also will kick you off if you are using too much cpu resources etc.

My host ain’t the cheapest but I know I’m getting what I pay for with http://jm-webhosting.com great speed and support
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