I'm making a website on a free hosting that doesn't have much space or bandwidth.
So I considered using Dropbox Public folder for static files, such as:
- Downloads (each a few hundred kilobytes)
Does Dropbox allow such extensive usage, and what is the limit?
They haven't outright banned it so I think it's safe to say that you are allowed to host websites on Dropbox. There is a wiki page, "Hosting Websites with Dropbox", (that includes information that was hosted on the official Dropbox wiki section) about how you could set it up via CNAME pointing.
If you are worried about bandwidth, see Arash F. post on the Dropbox forums:
free users who hit a bandwidth limit are using multiples of 10's of GB's of bandwidth in a given day so I wouldn't be so sympathetic to them on the forums as we are very, very generous with bandwidth limits ;-).