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We are moving things into less servers with the newer high powered servers as we speak.
As for load balancing it all depends on your amount of trafic and the scripts you run.
In my case I have to split things up. Also some of the larger thumbsites do as well. I dont want to give away their secrets down to the last detial, but its no secret now days that they split shit up..
People have been doing this for years. Thumbzilla's old owners were masters of this. And they didnt even really have thumbs or graphics!
Most hosts or techs at the hosting companies will try to tell you its not needed. But trust me it is. Myseld along with other webmasters have seen significant % changes in traffic when its done. Most programers of these scripts will agree.
But now days the servers are quite strong. You can put more in them than you ever could. And you can spilt them up in seprate HDs rather than seprate servers
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