The theory of small-system thermodynamics was originally developed to extend the laws of thermodynamics to length scales of nanometers. Here we review this nanothermodynamics, and stress how it also applies to large systems that subdivide into a heterogeneous distribution of internal subsystems that we call regions. We emphasize that the true thermal equilibrium of most systems often requires that these regions are in the fully-open generalized ensemble, with a distribution of region sizes that is not externally constrained, which we call the nanocanonical ensemble. We focus on how nanothermodynamics impacts the statistical mechanics of specific models. One example is an ideal gas of indistinguishable atoms in a large volume that subdivides into an ensemble of small regions of variable volume, with separate regions containing atoms that are distinguishable from those in other regions. Combining such subdivided regions yields the correct entropy of mixing, avoiding Gibbs paradox without resorting to macroscopic quantum symmetry for semi-classical particles. Other models are based on Ising-like spins (binary degrees of freedom), which are solved analytically in one-dimension, making them suitable examples for introductory courses in statistical physics. A key result is to quantify the net increase in entropy when large systems subdivide into small regions of variable size. Another result is to show similarity in the equilibrium properties of a two-state model in the nanocanonical ensemble and a three-state model in the canonical ensemble. Thus, emergent phenomena may alter the thermal behavior of microscopic models, and the correct ensemble is necessary for accurate predictions.