NFS is good for hosting text and layout, and works wonderfully with the idea of a small useful site. But don't make the mistake of storing bulk images on a host that charges 100x as much as S3 for disk space.

Edit: I did some math for fun. Assume 500 users storing 1GB each for one year. They'll pay less than $600 on S3, and roughly $60k on NFS. For reference, the price of a high-end dell poweredge with 512GB of ram is $15k.