We have several images and PDF documents that are available via our website. These images and documents are stored in source control and are copied content on deployment. We
Pros:
-load balancing
-isolating a different functionality
Cons:
-more work (when you create a page on the main site you would have to maintain the resources on the separate server)
Things like XSS is a problem of code not sanitizing input (or output for that matter). The only issue that could arise is if you have sub-domain specific cookies that are used for authentication.. but that's really a trivial fix.