It appears that Google has let something slip which seriously affects the "folders vs. subdomains" discussion.
In the Links tab of Google Webmaster Tools, it says:
Code:
This table provides a list of pages on http://www.example.com/ that have links pointing to them from other sites.
Click the number in the External links column to see a sample list of links to the page.
See Internal links for internal links and links from subdomains.
Did you notice what I noticed?
"See Internal links for internal links
and links from subdomains.
