Adding a market to this problem is interesting and may work, indeed. But you must not forget, that most internet connectivity plans for private customers prohibit commercial use, where the network is the essential part of that business. If people start to make money on IPFS, the ISPs will not just watch. Another aspect of this is taxes that people must pay if they make a profit, and all the requirements to operate a business. With this in mind, I am skeptical that this will scale to a size where you can say: And now it is really a distributed thing.
> 2) Yeah, I'll admit the asymmetric nature of home internet is a bit of a hassle. I suspect you'll still require machines on the backbone seeding content, with domestic machines focussed more on providing content to local peers and/or seeding rarely accessed content. In the long-term, IPFS can help ISPs in reducing their costs (content can be grabbed from within their own network, instead of having to peer with another network for almost everything), which might help to convince them to change.
Many ISPs already do that. CDNs use ISP data centers to bring content to customers. In fact, IPFS is not much different from their solutions. But IPFS can be a standard for content distribution. That would be a good thing.
> 3) IPFS doesn't force you to host any content you don't want to. If you choose to host illegal content, that's your problem.
It is not always obvious what content is legal. Copyright laws will test IPFS hard.