I am personally a huge fan of subdomains. They seem to carry more of a weight and volume than standard interlinking. I'm not sure why. Infact it's kind of a touchy subject for me. Subdomains have enormous linking power. Anyone who knows me or is familiar with my rantings is well aware that I have a passionate hatred for about.com for that very reason.
I hate to use about.com in yet another example of the BS Google puts us through by allowing subdomain spam, but here it is.
Ever wonder why About.com ranks #5 for an extremely competative term like "home video?"
This is why
Take a look at their inbound links to the homevideo subdomain:
http://www.google.com/search?hl=en&q=link%3Ahomevideo.about.comOver 13 pages of results, and once you start clicking through the results you'll instantly see why about.com pisses me off so much

But it also is a great way to illistrate the power of subdomains and intelligent interlinking.
I personally would love to have over 4,300 high page rank, highly relevant on topic links pointed to each one of my sites simply by creating a huge amount of subdomains.
To its credit this type of network does create a ton of work. You have to start out with some outside linking. Then convince google that your main page is authoritive in nature. Then create some subdomains and convince Google that each one of those subdomains are authoritive in nature. Then so on and so on, until any subdomain you create automatically becomes an authority site.
Let this be a lesson to you kids. Never feel bad about using blackhat or bluehat techniques, because if your site became popular enough Google will allow your site to continue using the techniques.
My point in case: I wouldn't call this your ordinary site map. Would you?
http://spiderbites.about.com/ <-Also note the seperate Class-A IP and the PR8 on
http://spiderbites.about.com/sitemap.htmHowever by all theory, if Google ever lowered the value of links between subdomains, then all of us who compete for competative terms that are typically monotonized by sites like about.com and amazon.com will go up in rank. So for that reason keep them TBS blogs a comin!