Think about all the extra space on all the harddrives in the world that isn't being used.
For example, when you buy a new computer, with a 500 GB drive, 400GB of it isn't going to be used for a while.
Hard drives may be cheap, s3 may be cheap, but that extra 400 GB of hard disk space? That space is literally FREE.
Hard disk space is weird, because there is so much completely unused space out there, that would be literally free to use.
Filecoin will allow this free space to be put on the market.