Wisdump says the end of personal storage is near:

I predict that personal home storage is going to all but fade away in the next few years. There just won’t be any need for it. Those who still insist on buying portable hard drives and encased gigs to throw next to their machines will be looked at by the young’ns the same way we look at our grandparents who stuff their money into mattresses for fear of trusting the bank.

Hear hear! Almost. I agree with the sentiment, but practically speaking, we're nowhere near the point of having fast enough Internet access to exclusively use online storage. Broadband access is far from universal. On top of that, today's broadband is still too slow to make Internet-attached storage pragmatic.

I have a $15/month Dreamhost account that currently gives me 517 Gb of storage. And it's going up. I also get 6 Tb of monthly bandwidth to read and write from all that storage. Great! I would love to use that space to house (and stream) my media collection, except that the upload speed of 128 kbit/s is too slow to make my IAS useful. I would argue that even 1 Mb/s upload is still too slow.

I think it will be quite a few years before we get rid of hard drives in the home.

BTW, I'm still looking for a good 1Tb home NAS solution. Any suggestions?