This is a horrible idea. Why would you take the job of computer security, management and purchase away from a centralized source and leave it up to the everyday laymen to handle. You say this would solve issues of privacy, but in fact would be a much less secure form of network and would likely increase the risk of security and potential data theft.

I'm a System Administrator by trade and would not ever recommend a solution like this. Centralized systems are just easier on the user and much more cost effective.