Subdomains vs Full domains.

Now before you jump the gun, Ive spent the last 3 hours using the search!

Im looking for a little more difinitive answer on subs, how they rank and how they are "read"

Heres an example of my thoughts.

Lets say I wanted to target 6 keywords (way more actually, but it will bore readers to put too many in this example)

kw1 "purple velvet pajamas"
kw2 "purple velvet pajama"
kw3 "red velvet pajamas"
kw4 "red velvet pajama"
kw5 "green velvet pajamas"
kw6 "green velvet pajamas"

Just for arguement sake lets say that all variations of each exact match were taken and youve decided subdomains might work in this case and a base domain of "velvetpajamasquad.c0m". Would google read "purple.velvetpajamasquad.c0m" or does it read "purple.velvetpajamasquad.c0m"?

I have more questions depending on the direction this conversation goes.

In my experience it would take the last example.

anyone else have an opinion on this, its contrary to what I thought

I prefer sub domains, like I just said in thread two seconds ago