- Nobody wants to be a sysadmin. Being a sysadmin sucks, and taking care of servers is hard. Sure, your content may disappear if the startup goes offline, but it will disappear if you have a hard drive crash, are hacked, lose power, or any of the million other issues that can happen.
- People have come to expect fairly good reliability. Having everyone host their own content will be a big step backwards in this regard. Dave's picture? They've been inaccessible for a week... Guess I can't check them out.
- Most broadband connections in the US are not symmetrical in bandwidth: They have much more download than upload bandwidth. That means that most connections do not have enough bandwidth to serve even a moderately popular image, let alone a popular video.
- Last but not least, the vast, vast majority of people are not even close to technical enough to take even the most basic steps involved. For this vision to become reality, the process would need to get much, much easier.