Agreed, storage is arbitrage, but arbitrage that's going to have a ton of economic purpose and necessity, not just somebody being a middleman.
The Chevy Bolt's batteries have been widely reported to cost $145/kWh, see for example [1]. I'm not sure what's excluded from the whole component to get to the price, but it's a point of reference at least.
The full life of various lithium ion batteries is still being studied and will vary with chemistry, but roughly a partial cycle seems to count as a partial cycle in terms of battery life. So if you're only cycling 75% capacity on a day, then you'll make up the extra 25% in longer life. Most studies I've read of lithium ion battery life but the number of cycles at 1000 +/- 200, to maintain "most" of the battery's capacity, which is why I used the conversion factor of 1000. I would believe a 25%-40% swing in practice, in either direction.
Peaker power plants quite frequently operate at over $0.30/kWh, more than 6x the cost of bulk energy. Energy storage is already gaining in this space [2]. Of course, consumers never see $0.05/kWh pricing, averaging $0.12/kWh nationwide, which is why residential solar makes so much sense for so many people. Consumers that choose demand-based pricing are already exposed to price swings on the order of $0.20/kWh in time-of-use plans both on Southern California Edison [3] and PG&E [4].
The speed with which solar and batteries are changing is going to catch a lot of people in the energy industry completely flat-footed.
[1] http://cleantechnica.com/2015/10/05/chevy-bolt-battery-cells...
[2] http://www.bloomberg.com/news/articles/2015-12-22/batteries-...
[3] https://www.sce.com/wps/portal/home/residential/rates/Time-O...
[4] http://www.pge.com/en/myhome/saveenergymoney/plans/tou/index...?