I don't care how many movies and songs they let you store. Using netflix I pay $8/month and I get to watch all of their movies whenever I want. Why would I pay Apple or anyone $20 to watch my movies and listen to my music?
"Thanks for purchasing Avatar through iTunes, would you like to watch it on your TV for only $20 more?"
Amazon announced the service this morning - 5 GB of cloud space and a player to access music stored in your Cloud for PCs and Android devices. I worry though that we have two antagonistic trends at work - the content providers are pushing bandwidth-intensive cloud storage, while service providers seem to be more vigorously setting download quotas. Collusion to make both sides rich, perhaps...?