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The usual excuse (that I've read Host Gator use anyway) is CPU usage.
I think it's probably difficult for the average end user to understand that hard drives are limited, because they see them as pretty cheap.
The reality is that a server needs multiple quality hard disks in a RAID configuration to ensure both speed and reliability. Also, unless you use a SAN based system, it becomes difficult to add a large number of disks to a small 1U or 2U server...
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