It's all fun and games until the government decides you're hosting child porn on your computer, even if you didn't put it there.

So, they'll have to come up with some means of centralized censorship, which is going to hack off the devout civil libertarians who would initially support it. And the vast majority of internet users aren't going to care until someone tries to explain to them how the internet is using their resources for storage.

Then the fun starts.