I want to know the max number of web applications that can be created on SharePoint WFE. Is there any limit or does it depend on hardware?
Also, does it depends on IIS version?
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Assuming that you assign separate Application Pool to each Web application, The recommended limit is 10. Yes, it depends on the server hardware.
Regarding IIS, anyway you will be using IIS 7.x for SharePoint 2010.
For details, see here : http://technet.microsoft.com/en-us/library/cc262787.aspx#Boundaries