Clarification on Sub Domains in Google: Google to Make It Harder But Not Impossible

Ad: Convert visitors with Google Analytics - free 
 Friday we reported that Google to Begin Treating Subdomains as Folders: Max 2 Results Per Search based on a post from Tedster at WebmasterWorld . Soon after, Matt Cutts of Google commented saying: This isn't a correct characterization of what Google is looking at doing. What I was trying to say is that in some circumstances, Google ...