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There is no such think as "unlimited" bandwidth. Period.
Everyone has to pay for bandwidth, and people are allotted a certain amount per month. Most people, and most sites, will hardly make a dent in bandwidth...but, if you have a site that has tons of, say, flash games and video clips. Your site becomes popular, and starts to get thousands of hits a day, everyone downloading 500K flash games or 2MB video files. You can bet this will put a strain on the host and they will (1) make you pay more for the extra bandwidth you are using, or (2) shut your site down.
Companies typically can get away with overselling because usually no one comes close to maxing out the usage according to their plans...but the host, just like you, still has to pay the bill for bandwidth (the same goes for space too).
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