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If you are 'controlling' who the admin users are, you should choose the domain/sub-domain option that will make the most sense to your visitors.
Seperate web accounts with seperate XOOPS installations will keep things easier to manage imho.
As the owner of the reseller account you will be able to get into each sites control panel and simply add your approved users with their privelidges to the database of each site that they will have control over.
Then use a module that pulls RSS feeds for the main site, and use modules with RSS options to publish the content from the child sites.
xhld0 module works well for pulling RSS info, and there are many Content modules that provide RSS syndication.
Get the main site up and going with all of the content modules and the RSS feed modules, and copy the root directory and paste it into the child domains (edit the main files for each child domain). Export the database from the main site and import it into the child sites.
You are now master adminsitrator of all of the sites.
When you add an admin to one of the sites, simply export the xoops_user tables and import it into all of the other sites.
The way I look at it is, the Reseller Account is your new 'admin area' for a cascading web pyramid.
(the same 'model' applies whether you do seperate domains or sub domains...and from my experience of the multi-site hack, the method in which you are sharing published information will need to be accomplished in the same way if you want it to remain seperate amongst the child sites. The multi-site 'hack' is focused more on having multiple sites sharing the same tables from the DB, whether it be the users or the forums...whatever, the point is that it becomes shared amongst ALL of the child sites. I got the impression you are looking for seperate with one master that includes info from all.)
Happy xoopsing