cat, subdomains are most often used by free hosts and other situations where the "weebmaster" isn't in control of the domain or the site. Link sites don't have the time to try to figure out which is good, which is bad, and so on. In my case, I just decline them all and don't worry about it too much.
Remember that most link sites get more submissions than they truly need. When I see a site type that 90% of the time isn't getting listed, I can save myself a bunch of time by auto declining 100% of them. It isn't very much fun for the 10% good ones that get squeezed out, but that's life.
Domains are cheap, hosting is cheap... when in doubt, buy another domain.
Alex
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