We are using WordPress Multi-site to operate a string of newspapers over multiple cities. We are using sub-folders setup.
Each City is it's own online newspaper. We use categories and WP-Multi-post plugin to organize the content on each site.
The benefit of multi-site is that we have one log-in dashboard for writers and editors to enter their stories. Then they use the Wp Multi-post plugin to send the story to the applicable city or cities (local news to one city, provincial news to multiple cities, national news to all cities). They also assign the post a category. Then on the individual sites we use categories to control how it is displayed.
We post 7-12 articles a day across the network of sites. Currently have well over 2000 articles on most of the cities (14 cities and growing). Database size is around 320 MB.
Running on a VPS linux server with WHM and Cpanel.
Currently seem to be having some issues with the server crashing. My host provider has been excellent in response time and making adjustments, but lately we have been tracking the problems to actual things we are doing on the site (ran Wp-optimize, was uploading large file and then canceled mid-upload, tried to backup complete Database using Wp-Backup plugin, etc).
We are getting some kind of problem about once every day or two.