The fact is, I'd much rather have everything local and pay a backup provider a small annual fee to keep a client-side encrypted backup for me.

I have plenty of bandwidth to my house for sharing photos and videos with friends. All I'm missing is the low-power plug server to host the app. It doesn't make sense for my photos and videos to live in a data center with low latency disk, Gbit networks and redundant power and cooling -- it's total overkill.

Photo and video storage is a perfect application for user hosted SaaS since there's so little cross-talk between users, and the vast majority of data is almost never looked at.

By the way, just because it's running on my own hardware, doesn't mean I wouldn't pay a monthly fee for the software!