Subdomains are an interesting animal... supposedly Google treats them as a separate domain as far as ranking in the SERPS... I haven't found that to be completely true, I find that the main domain passes some trust rank, etc, although I believe G disputes this.
They are a great way of getting keyword rich domains... I have about 50 subdomains ranked on the first page of G right now, and it was pretty easy to get that done.
The bad news, as mentioned already, is that it leaves a large footprint and everything could be gone in one little action from Google.
If you have a whitehat site, I think it is a decent way to go, at least from my experience, so far.