Chriso
See if you follow me here - one step at a time...
Router#3 has only port 21 forwarded to the DNS-323 - a host connected to it's WAN port can access only the DNS-323 - it cannot access any other hosts connected to the LAN side of router#3, or any other port on the DNS-323. This is how things would be in a typical "one router" environment
Is that clear?
Router#3 has it's WAN port wired to a LAN port on router#2 and configured so that it is in the DMZ of router#2. A host on router#2's WAN port cannot access anything on router#2's LAN side EXCEPT router #3, which will only accept a connection on port 21, and which it will pass to the DNS-323. Router#2 will pass all incoming connection requests on it's WAN port to router#3 and router#3 only - there is no security risk for any other host connected to the LAN side of router#2.
Are you still with me?
Router#2 has it's WAN port wired to a LAN port on router#1 and configured so that it is in the DMZ of router#1. A host on router#1's WAN port cannot access anything on router#1's LAN side EXCEPT router #2, which will pass the connection request to router#3, which will only accept a connection on port 21, and which it will pass to the DNS-323. Router#1 will pass all incoming connection requests on it's WAN port to router#2 and router#2 only - there is no security risk for any other host connected to the LAN side of router#1. Router#2 will pass these requests on to router#3, and router#3 only - there is no security risk to any other host on the LAN sides of either routers #1 or #2.
Still following?
The reason to use the DMZ is ease of use - if necessary, the user can then make port forwarding changes at router#3 only, completely ignoring routers #1 & #2 - as an example, he could decide to use a non standard ftp port, perhaps 2121 - and all he would need to do is change the port forwarding at router #3 - router#1 will pass an incoming connection request on port 2121 onto router #2 because it's in the DMZ, and in the same fashion, router#2, will pass it on to router #3, which will then either forward or block based on it's configuration.
Get the idea now?
Yes - a host on the LAN side of router#3 will have access to any hosts on the LAN side of router#2, and also router#1, and hosts on the LAN side of router#2 will have access to hosts on the LAN side of router #1 - so whilst Mr Landlord is protected from the outside world, he really has no protection from any of his tenants, and if - by chance - Mr pc & network technician, working from home, were to connect a virus infected computer to the LAN side of router#3, it's entirely possible for every computer on LANs #1, #2 & #3 to become infected, depending of course on the anti-virus package in use at the time, and it's "state of currency".
Not a nice concept at all - and it can be avoided using the appropriate network design.
As far bandwidth goes - this provides no bandwidth control whatsoever - and if the three routers are all capable of the 50mb/sec WAN/LAN throughput mentioned, then it would be possible to start an ftp download from the DNS-323 and completely saturate the uplink channel to the ISP thereby choking the downlink.