How does Wordpress, Squarespace and Blogspot manage with so many subdomains? How do they avoid negative SEO impact from lesser quality subdomains? If a subdomain perhaps featured something illegal or perhaps has a network of crap links... how do they avoid negative SEO spillover?
Google engineers are smart so I would think they take into account the purpose of these sites and their intended use. If the the majority of subdomains are crap and aren't adding value to their search results, I'm absolutely sure the effects will spill over and spoil the party like it did for Squidoo and hubpages.com
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