Look at this: Google change algorithm for subdomains. It means, if I have web site which is on subdomain instead on top domain, my site will be degrade. What dou you think about this, do I need to be worried? Thanks
I just think it is great! Why should a cheap sub domain get recognition from Google, when it is already so difficult for a prime domain to get acknowledged by Google?
I think its a right decision.. People would probably want their subdomains getting less traffic than their main domains.. Just use directories anyway!
We have a network of cars sites utilizing subdomains and it didn't affect us at all. I can see the point why they made the change. To save the time, the article is actually here.
I think it would be a bad thing, people use sub-domain to target their websites e.g. by location rather than having a specific domain - google should credit that and encourage people to put relevant content for different audiences