Can a hosting offer ‘unlimited space’?

In the present day, most of the web hosting companies come with the term “Unlimited Space”. For instance, Ipage, Bluehost etc., offers a hosting server for less than $5 with all the “Unlimited” space, bandwidth etc. These offers sound technically great, but when it comes to implementation the user does face some limitations.
Basically, your website does not that actual “Unlimited Space” feature at all, as the size your files will not take much space! However, the problem comes when you try to store data more than 1TB or so. And, if you take a closer look at their Terms and Conditions, you might be charged extra in case your website occupies more space than necessary! That says, the concept of “unlimited space” really doesn’t exist, and even if so, it comes with an additional price.
Thus, it is technically impossible for a hosting service to offer “Unlimited space”.