The majority of isp's do not guarantee speeds, which means you can be on a 1500/384 line and be receiving 500/100. These isp's (including pacbell, earthlink, verizon etc.) only guarantee speeds to the Central Office (CO). And even then, it's not a true guarantee, just a "best effort policy." Certain DSL providers have a true guarantee which ensures you'll get at least the advertised speed as long as you are on their network. They take it beyond the CO, which is really what you want to look for in a provider. When looking for a dsl provider you want to make sure they can GUARANTEE speeds on their network. SDSL lines are typically the best for speed and stability. In my opinion, the best service for a home user is 784/784k SDSL. Unfortunately, most isp's use ADSL, and some even use PPPoE, which is a step backwards. So let me go over this once more:
1.) You have your own line from your workstation to the CO. After that, it is routed through a DSLAM (DSL access multiplexer) which is installed by your CLEC (Northpoint, Covad etc.) in your local phone company's CO.
2.) "My question is does the router typically have the bandwidth on the network side to ensure that you get all of your bandwidth on the customer side?"
It depends. If you have a good provider then the answer is yes, if you have a bad provider then the answer is no.
If you have any other questions let me know.