As a Webmaster would you use this?

[Carrie]

Response as a webmaster:
I could see folks on dial-up considering this solution, but unless you toss GD2 (good) or ImageMagick (better) on there to resize content and make thumbnails as well, it wouldn't be worth it. They could send content straight from the provider to your storage area, but they'd still have to download and resize it before uploading it to their sites.

Couple it with a resizing solution and you might have a winner.
Couple it with an optional CD ordering feature (pick what content you want burned on a CD, pay a fee, and it gets burned and sent to you) and you might also have a winner.

Response as a web host:
If you do this, make sure to market this to the mainstream folks as well. There are plenty of folks who pay me just to store large amounts of data for them; I toss up an upload/download script and they can access it from work and from home without carring around zip disks. I also make sure to implement access-levels so that they can allow other people to download or upload certain things (at their own discretion).
There are other ways to market being a storage solution - I make a nice side income from it. You may want to talk to Sleazybear over on Netpond, he used to have an entire network of servers just for this purpose and eventually sold it for a very pretty penny.