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Creating subscription plans allows you to develop a collection of products that customers can upgrade and downgrade to from within the plan. For example, if you develop a group or plan called 'Web Hosting' and perhaps you have 3 products called bronze, silver, and gold hosting subscriptions. Each of those would be attached to the 'Web Hosting' subscription plan.
Customers could easily upgrade/downgrade through only those related products. This gives you flexabiltiy to sell other products and plans and customers not see them during managment of their own orders.
Managing Subscription Plans
You can enter a name for the subscription plans that best fits your needs. You can also set whether or not customers should be allowed to downgrade.
All customers can upgrade their plan, if a higher priced item/subscription is available. What you do have control over is whether to offer the downgrade option, which is merely a business choice on your part. This way customers may or may not see the lower related subscription choices.