RemyCanad: I said it, I'm right, and I'm a network engineer.
Here's how cable works:
Cable to the central node has something like a 30Mbps bandwidth.
Cable man hooks your house up, runs a line out to the pole. A bunch of other people nearby run on that same pole, but I'm pretty sure the sharing doesn't start there, you run on different frequencies. From there you go to the node for the area (may be a node on every street for high-population-density areas, but usually something like a neighborhood or a block). At the node, you pass onto the shared connection back to the central routers/servers/concentrator/hub. This is where you start sharing bandwidth. The node has only 30Mbps back to the central hub (assuming only one line goes to the node).
So, say 50 people in the neighborhood have cable internet service (depends on the area of course, but keep in mind apartment buildings often have contracted service so you don't end up with an entire apartment building running to the same node as everyone else). Give them a 1.5Mbps downstream cap. Obviously, they have 75Mbps of bandwidth on the local line to the node, but then the node only has 30Mbps outbound to the network. So, they start sharing that 30Mbps right there.
However, ALL service providers work on an "oversell" basis (both in their backbone bandwidth and in their next-to-last-mile bandwidth). Sometimes as high as 10 to 1 (especially for dialup). This means they sell more connections than they have the capability to handle at once. For dialup, that means they have 1 modem for every 10 customers, because they don't expect all 10 to be dialled in at once. The same thing is done with cable, and really a 75 to 30 ratio is less than 3 to 1. They don't expect all 50 customers to be download at the same time, all from sites capable of maxing out their bandwidth. And in fact that's what happens: usually only a third or less of the customers are online. Or even half those customers are online but only doing things like browsing the web, which doesn't need that full dedicated 1.5Mbps (keep in mind you're not usually contracted for a full speed, you're contracted for "up to" speeds). So in the end, the cable node hardly ever gets maxed out so much that people get bogged down. Even if all 50 customers came home at once and started downloading email, it's not going to suddenly become dialup speed. You're still going to have over 500Kbps of bandwidth available.
Here's how DSL works:
DSL guy comes and runs a line from the pole to your house (or comes out and taps into your existing phone line for ADSL). This line goes into the local telephone company's lines back to the central office. These are dedicated lines all the way to the CO, so no sharing up to that point. Then your line is tapped into the DSL provider's equipment, a DSLAM (DSL Access Multiplexor). Now, your entire neighborhood, usually your entire CITY except for places like New York and LA, huge places, and often even multiple cities, runs to that same central office (and the reason for those others having multiple CO's is due to higher population density, which means there's still the same number of people using each CO). So every potential DSL customer in your area is going to be terminating on that central office.
Now we'll assume only one DSLAM in the CO, though there could be more than one, as a single DSLAM can handle hundreds of DSL connections (maybe thousands, depending on the model; usually they just stick another card in to add more ports, each user requires one port, plus they have backup empty ones). So lets say there's 250 people in the area served by this CO. This is a low count really, but since I'm proposing a CO with only one DSLAM, I'll assume a small service area. So now we have 250 people coming into this DSLAM. How do they get to their ISP?
First they have to traverse the DSL provider's network. To do this, the provider has to provide a trunk line using the ATM protocol (DSL can run on ATM or frame relay, but it's changed to ATM at the DSLAM), and that trunk line connects to their own backbone network. In this case, we'll say the provider uses a DS3 (T3), which is 45Mbps, or rather, 2 DS3's. This is quite common and is probably about right for the number of customers we're proposing. They'd probably have more than a single DS3, or perhaps an OC3, if they had many more customers. At 90 Mbps of traffic (ignoring any of their own monitoring bandwidth), that means we're at roughly 2.75X oversell if each of those customers has a 1Mbps downstream (which is pretty optimistic). Of course, with DSL, users tend to have MUCH lower speeds due to high prices, so we'll say a 640Kbps downstream for average, which totals 160Mbps. This is only a 1.75X oversell. Extremely optimistic, we have a great provider here.
Now they're passing a maximum of 160Mbps of requested bandwidth if ALL the users tried to download at once. This is exactly where we are with the cable provider. You've got more users with higher speeds than you have bandwidth coming out of the aggregation point. This means that the provider depends on the fact that users are NOT always downloading at full speed, that usually only half or less of the customers will need anything near full speed. The fact that the DSLAM has more bandwidth coming out of it than a cable node is due to the fact that the cable node is serving fewer customers.
In addition to this, both the cable and DSL provider then have to pass the traffic off to the ISP service (neither a DSLAM or cable node pays attention to IP information usually, though a DSLAM can be configured to do so I believe). In the cable company's case, they're handing it off to their own company usually, so they may even have their servers and/or routers right next to the cable node so you're immediately onto the IP network (and depending on how a node is designed, I suppose they could even pass you out via Ethernet, therefore destroying the need to share the limited cable bandwidth).
For a DSL provider, your traffic usually has to transit from the DSLAM out over many points on the DSL network, which are "dark", you don't see them on a trace because they're not looking at IP information, just like you don't see a hub or switch on your network. From the DSL network your traffic is routed to your ISP's IP network via a dedicated circuit between the provider and your ISP, usually a DS3 as well. The DSL provider usually pays for this transit line, and at least in my experience they're not oversold much, if at all, in terms of bandwidth, since a single ISP won't have so many DSL customers that they can overload a DS3. However your traffic has definitely already had to pass over multiple hops within the "dark" network, any of which could be constraining your bandwidth at any time due to traffic loads which aren't even related to your area's DSLAM. (This is exactly the way the Internet works as well, using IP traffic).
Along with these issues, some cable AND DSL providers end up NOT having enough bandwidth out of their node or DSLAM even when they try to plan their overselling well. I can't name names, but for months my company's DSL customers in certain areas had issues with latency and slow speeds because the DSL provider couldn't get more bandwidth into their DSLAM (due to issues with the providers actually running new fibre). This was because their own transit circuits were overloaded with the amount of traffic that the customers in that area were passing (not just our own, EVERY customer of every ISP that provides DSL in those areas).
You can't blanket say that cable is always going to get slow when a lot of users get on the network. This happens with ALL internet traffic with ANY provider using ANY technology. It depends greatly on the number of people in your area using the same service, and the design of the provider's network, and your ISP's network design. Of course, even within a single company's service area, there are variations. A DSL provider is less likely to greatly oversell because they sell you service with a contracted speed (however this is only guaranteed within their own network, they won't give a damn if you can't download at full speed from somewhere else), whereas cable providers usually say you can get "up to" speeds, so you can't complain if you get less. But again, most DSL users get much lower contracted speeds than cable customers are suggested.
So if you've all managed to read through this, maybe now you'll see why DSL is just as much a shared technology as cable. It's just somewhat differently located and designed, and the size of the pipes is different, but it's only a difference in scale; relative to the number of users, it's about the same. I personally get 1.5Mbps almost constantly at all hours of the day on my cable, and the same thing happens at my roommate's parents' house in another city. However we live in areas with probably few cable internet customers. The people in more populated areas probably experience somewhat slower speeds, but most likely only at peak times, the same times everybody gets slowed down a bit due to overall Net usage spiking.
Note that my numbers may be off a bit, maybe a lot, but the sentiment and basic theory still holds true.