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Actually, the term unlimited as it is used in hosting industry parlance means that a hosting company will not limit general traffic usage --or in other words will not charge on a pro rata basis (or otherwise) for bandwidth, provided there are no abuses.
Ergo, the term "unlimited" does not relate to raw unabridged usage, but rather the extent to which a user will not be charged for general usage of bandwidth. The caveat is that the usage (bandwidth consumption) must be reasonable. Each responsible host defines what is reasonable in their acceptable usage policy.
Indeed, in our case we do not charge clients for consumed bandwidth provided their usage is consistent with our acceptable usage policy. In a nutshell, we permit a client to have unlimited traffic to their website. This is for sites serving web documents and NOT those being used for storage (no offsite storage area for electronic files). Limitations are- of course --placed on download-, archive, image, and multimedia-intensive sites (and other types of sites) where functions or activities would frustrate our intent to provide an uncapped service and/or strain our system resources.
I do hear what you are saying, and I am well aware that there are many web folk who love to state "there is no such thing as unlimited" whenever they can.
I like to think of it like this... it's sort of like when you get cellular service and the carrier tells you that you have free nationwide cellular service. However, as with every service offering there are limitations and exceptions. That's why we have definitions, terms of usage and contracts. With my cellular example, the free nationwide service would not include, inter alia, instances where you are charged because the cell phone was outside the carrier's network. Similarly, certain people could argue that the carrier was lying and there is no such thing as free nationwide roaming. But they would be wrong.
While this is not a perfect analogy, hopefully it provides context (and food for thought) with respect to the unlimited bandwidth issue.
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