This is mostly true. A hub would actually follow the rules to the letter I stated before of total bandwidth/# of talkers. For high end equipment, like the stuff your office is paying over $1000 a switch for, they can handle 1GB per port speeds, and have the bandwidth on their (switch itself) internal backbone. On the sub $100 equipment you buy at Best Buy for home use, don't count on an 8 port Gb switch being able to handle routing 8 separate gigabit data streams and not losing speed. That is why Cisco still gets to charge $3000 for that kind of equipment. I normally simplify explaining it to people and use the hub rules so people have their expectations set more realistically. These low end switches fall somewhere in between those two data rate levels, and are an improvement for sure. Gigabit stuff is cheap now, and you will definitely benefit by making it your backbone. Do like in another post here, keep you current router and run one wire from it to your gigabit switch for your internet connectivity. This will just give you most stable network (speed wise) you can run for under $100.