As far as storage space goes, it's already cheap to get 1TB or 2TB and it will only get cheaper and bigger.
Just my $0.02
Yep, I have 16 TB on my server (room for another 16 tb @ 2 tb/disk). My lazy butt likes to click the remote to watch a movie (and my rack/BR player is 50' across the house so I rip um). 500GB docs and Music (with redundancy/backup), 1.5 TB DVDs, 3.5tb Recorded TV and the rest BR. I don't backup Video I'll just rerip (but that could be a lot of time re-invested. Oh well!)
At $140/2 TB aint bad (not on sale).... but setting up the machines can get pricey
Jeff