idolw - 8:45 am on Feb 14, 2006 (gmt 0)
we have a website that has a subdomain for each major geographical region we cover. works very well for us but we do not use subdomains for spamming reasons.
as we are now building another (much larger) website, we have decided on subdomains, too. these simply make stuff more clear to everyone.
I see no reason to ban them.
If google cannot handle subdomains properly, they'd better stop spending cash on new acquisitions and start working hard on their algo!