When I worked in webhosting, the average website used 50MB or disk space. The company I worked for would cram over 1,000 websites onto a server, and promise all of them unlimited disk space, but would only have enough hard drive capacity for everyone to use about 1 GB of drive space. Despite that, the only time the servers ever came close to filling up was if the server had been hacked as was being used to serve warez. Webhosting companies bank on the fact that most people aren't even going to try to see how much "unlimited" really is and will only use enough space to run their web page. If everyone were to use a lot of space, they couldn't offer unlimited plans, but because most people don't they can safely make that claim.
On last thing, if you do start to cause problems taking up space on a server, and it would have to be a lot of space, they're going to make it tough for you to keep the site running. They'll tell you have to move to a different server, but they won't move the data. Or any of a number of tricks to make it difficult for you to keep transferring a high volume of data. Hoping that you'll either give up on using so much space, or cancel your account.
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