A whole team is a small group of people (no more than 12) that work together towards a common purpose, primarily spend their time as part of the team, and as a team have all of the skills they need in order to be self-sufficient. These skill sets may include server side programmer, web designer, tester, technical writer, project manager, etc. The intended benefit is that you spend less time waiting for other groups and bringing part-time participants up to speed, you lose less time due to communication delays, and individuals spend less time multi-tasking between multiple projects.
So, if you were starting a new software company with your own hard-earned cash, would you use whole teams or wouldn't you?
Next: Poll - Collocation, The Benefits