Having that performance makes it more expensive than an archival specific solution, which tolerates latency just fine as long as high throughput is maintained.
There's a reason why Mozy, Carbonite, SpiderOak, etc. all run our own data centers. I can sell a 100GB account for usable across unlimited computers for $50 per year and be profitable.
That said, the market certainly has plenty of room for more backup choices, and any option to help people avoid data loss is a win. An exclusively Mac app seems like a good idea.
I would happily use a product like Arq (or Time Machine) for my documents and current photos, to make sure the backup is always current, and then whenever the backup hits 50gb, move it over to an off-site drive (at work, a relative's house, even in a safety deposit box).
We both know what S3 is, and know that they charge per gig. But the market of people who want online backups for their macs don't necessarily know this.