I am planning to develop some geo domains that have "in" in front of the geo location, for example, incitystate.com. I am debating whether to use subdomains or a directory structure. The advantage of subdomains would appear that it creates perfect keyword domains, example, anything.incitystate.com, however this is a little more complex and I hear there is a limit to the number of subdomains you want to use for any one site. Does anyone have an opinion which is the better path to go?

[edited by: phranque at 8:08 am (utc) on Dec. 20, 2009]
[edit reason] exemplified domains [/edit]