Thanks for clarifying.
So I think that we end up concluding that many of the hosted server companies that offer "unlimited" stuff, really do have limitations. If one wants to run Moodle on a hosted server, one can, but you have to pay attention to some of these "limited" restrictions such as number of files, number of tables, size of database, etc.
For someone getting started, a hosted server might be a good way to experience an installation of Moodle "on the Internet." As one's LMS needs grow, moving up to a VPS is an option. With greater needs, maybe a dedicated server, or eventually one's own server. There seems to be a lot of ways to grow a Moodle.
Just so that you know, Usman, I am very please with my MAMP installation. This is a good alternative when someone wants to just learn Moodle, and its features. I have moved my old 1.9 Moodle installation (with data) into this environment, and a rather recent backup of my current 2.7 Moodle into MAMP. I can now get to all my student data without the need to be connected to the Internet. I still have a little bit more work (like getting cron to run correctly.)