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I use iPowerweb too and have a very large mailing list. I use PHPlist to send out a newsletter every month and have had to throttle the speed at which the program makes requests to the SQL server because if it goes over 70,000 in an hour the SQL server ceases to respond for about half an hour.
I investigated using other program that use sendmail but found those same restrictions on Ipowerweb too.
What I'm saying is that you can send more e-mails with phpmail but you'd better be careful you don't reach the limit or your site will crash!
There is also a 2mb limit on uploads using php and no option to increase it so I'm looking to change my host now.
Shame really because apart from those gripes I've found them to be a fine host service...
Any recommendations for a new host are more than welcome!