There is no such thing as a safe system with one point of failure. No matter what medium you use to store data, you must always have a backup. It's the only way to be sure.
(Personally, I pay the $5 a month for a Google Apps account. It's convenient to let Google host my email, but if something goes wrong, I can always change my MX record and start collecting my own incoming mail again. And, I don't have to block ads anymore :)
The plug computer is a Sheeva plug. There is a low power WD USB 1 TB drive connected, power consumption in idle is <5 W.
http://www.wired.com/threatlevel/2008/03/godaddy-silence
In support of your (and my) point: Local storage is now dirt-cheap, small in size, and spacious. Exactly the WRONG time to start turning your data over to someone else to store "in the cloud."
People need to think things through before uploading all of their stuff to "the cloud." The network is a transmission medium, not a place to keep things. If you own a connected server, that's one thing. But why trust all of your data to some third party who can pull the plug on a whim and leave you with no recourse?
Here's Microsoft's moronic account-recovery procedure for an inexplicably blocked Hotmail account. It's IMPOSSIBLE to follow the directions:
http://farm6.staticflickr.com/5306/5773538918_fa4af1de42_b.j...