1. For a Linux user, you can already build such a system yourself quite trivially by getting a server setup, installing Xen, and then rolling out your own VMs that way. From Windows or Mac, these VMs could then be accessed over SSH.

2. It doesn't actually replace a dedicated server. This does not solve the connectivity issue.

3. It does not seem very "viral" or income-generating. I know this is premature at this point, but is it reasonable to expect to make money off of this?

(/s)