Yep. but the method I describe involves catching the 404 with a custome
error page. this custom error page looks at the requested url which is
passed as a parameter and, for example, does a db lookup on
Dustmaster5000.
the nice thing is that you can tailor the url "pseudo sub directories" as
much as you want. Different languages for instance. Without actually
having to create the whole directory tree. also some search engines attach
relevance to the URL components.
I don't see how you can create a (maintainable) large website any other
way.