Puny bandwidth is going to be a problem whether the server is your own or exists at some unspecified location in the cloud.
Cloud storage isn't necessarily bad, but it's expensive considering the cost of storage these days and it might be a good idea to encrypt anything that you don't want to become public information before uploading it onto a cloud server.
There is also the sense I have though, that what I am paying for is also:
a) their raid on my files
b) their electrons
c) their sysops and their training and certification and their corporate deals with seagate, and netapp, and cisco, ...
As I said, my dockstar died, I will replace it with a USB hub, but, it is a bit of a pain when what I would prefer to be doing is anything more interesting, fun, or profitable.
Regarding puny bandwidth, I am not sure I understand your point. I get about 12M down and about 600K up, and my understanding is that is fairly typical for a home cable connection (in the US). But that 600K up limits my downloads anywhere else on the planet if my files are stored at my house and served by local server there.
If I store the files in the cloud, I get Google's or Wuala's or Dropbox's bandwidth to my device.
Cloud storage isn't necessarily bad, but it's expensive considering the cost of storage these days and it might be a good idea to encrypt anything that you don't want to become public information before uploading it onto a cloud server.