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Typically one index is used in many queries. So why not index every column? First, if the columns are large, like varchar(max), text, or varbinary(max) columns, then it doesn't make sense to build large indexes unless you often query these fields. Even then, a full-text index is likely a better choice.
1. SPACE Indexes use disk space, so it's not free 2. TIME - MAINTENANCE every time you add or update a record, you have to recalculate your indexes and having indexes on all columns would take a lot of time and lead to bad performance.
Don't just blindly index every column just because you can - this is a guarantee for lousy system performance - any index also requires maintenance and upkeep, so the more indices you have, the more your INSERT, UPDATE and DELETE operations will suffer (get slower) since all those indices need to be updated.
No, you should not index all columns. It will be slower when you write data.
Indexes take up space in memory (RAM); Too many or too large of indexes and the DB is going to have to be swapping them to and from the disk. They also increase insert and delete time (each index must be updated for every piece of data inserted/deleted/updated).
You don't have infinite memory. Making it so all indexes fit in RAM = good.
You don't have infinite time. Indexing only the columns you need indexed minimizes the insert/delete/update performance hit.
Keep in mind that every index must be updated any time a row is updated, inserted, or deleted. So the more indexes you have, the slower performance you'll have for write operations.
Also, every index takes up further disk space and memory space (when called), so it could potentially slow read operations as well (for large tables). Check this out
You have to balance CRUD needs. Writing to tables becomes slow. As for where to draw the line, that depends on how the data is being acessed (sorting filtering, etc.).
Indexing will take up more allocated space both from drive and ram, but also improving the performance a lot. Unfortunately when it reaches memory limit, the system will surrender the drive space and risk the performance. Practically, you shouldn't index any field that you might think doesn't involve in any kind of data traversing algorithm, neither inserting nor searching (WHERE clause). But you should if otherwise. By default you have to index all fields. The fields which you should consider unindexing is if the queries are used only by moderator, unless if they need for speed too
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