The following articles discuss the topology in detail
http://sp365.co.uk/2012/01/initial-topology-planning-site-collections-vs-subsites/
http://techtrainingnotes.blogspot.com/2008/03/sharepoint-site-administrator-vs-site.html
Of note the storage quotas are established at the site collection level.
As with most IT matters scale is important, an appropriate quota level is 100 GB
for the site collection.
In order to control storage quotes at the sites level a third party tool such as
Control Point is needed.
There can be a confusion in terminology as the SharePoint Object model refers to the
Sites property – really at the Site Collection Level
See http://msdn.microsoft.com/en-us/library/ms473633(v=office.14).aspx
Filed under: SharePoint 2010