I have a 2TB family plan that I'm paying $10/mo for, a total of 135GB is used. Most of that usage is from iCloud Photo Library, and while I could use the 200GB plan I'd rather just pay the extra to have effectively unlimited space and not worry about needing to upgrade the plan, especially as I record video in 4K by default now.
I'm sure I'm not the only person who does this, $10/mo is probably nothing to the vast majority of people on HN compared to the hassle of worrying about whether we have enough storage or not.
HEVC/H.265 introduced in iOS 11 largely makes shooting 4K on an iOS device cost _roughly_ the same in storage terms as 1080p/H.264 did, so recording in 4K doesn't really move the storage needle here like it used to either, assuming of course you have an iPhone 7 or newer.
Same boat 100%... Family sharing, 2TB plan, have my wife and mother in the family. Combined we use less than 200GB, but I am happy to pay for more storage rather than deal with tech support calls from them two when we go over 200GB and they get error messages popping up. :P
I do also pay for Office 365 though, $100/yr is significantly cheaper than purchasing Office for every computer in my house.
Apple’s $10 is absolutely not a good deal.
Personally, I'm using seafile on a server, it's cheaper than iCloud or Dropbox, with more storage, and more custom functionality. Many NAS nowadays support Nextcloud out of the box.
You don’t have to dumb down things unnecessarily. If a person can buy a smart home device, plug it in and configure it, or an Apple TV, or a computer, then they can also get one of the simpler NAS, and sync with that.
Geographical redundancy and low-latency data transport are nontrivial factors in pricing cloud storage.
(Which is kind of a shame because a truly bulletproof, user-friendly NAS might be an interesting product. Who is going to be the Apple to Synology's Microsoft?)
Don't forget that the price includes VAT and other taxes. General infrastructure costs, including traffic. Redundancy. Backups. I don't think they're turning much of a profit, but offer it because it makes their platform more attractive.