Interesting. I think a lot of it depends on how usable it is. This won't help the average user if they think it's too hard to understand. And pretty much any additional layer of frustration is enough to turn most users away. After attempting to explain Dropbox to my clients, I'm not sure there's a chance of this taking off for a significant portion of web users.

But I agree, something needs to change. I don't know how but at least it looks like good people are working on it...