For example, training.7sheep.net is an official subdomain, but I could create docs.7sheep.net and make it look like an official subdomain and request peoples account information or do other bad things. GitHub ran into the same problem when they started supporting GitHub pages. Originally these were subdomains off of github.com, but after all the spoofing and other issues they moved them all to github.io. This way you never need to create a list of 'reserved' names and don't need to worry about confusion down the road.
You can read about GitHub's transition and reasoning at https://github.com/blog/1452-new-github-pages-domain-github-....