What I'd perhaps really like to see, which nobody is (yet) doing is a combination of a service like this with Pandora. I like the idea of Pandora helping you build custom radio stations, but of course there's no way to back up and listen to a song again. Merge that with stuff you "own" (and having a "buy" button that ties it all together in an interesting way), and you could really have something cool.
Grooveshark does (nearly) everything you want. The only thing to look out for is that if you upload music that they've been told to disallow you will have your account disabled from uploading music ever again. I don't find it to be a problem as I can find and listen to pretty much any song I desire at any given time without having to upload it from my personal collection. I find it to be vastly superior to Pandora (Actually, that doesn't take much. I've never liked Pandora).
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