On a personal note, it's definitely possible. I've done it without much loss of convenience, which I think is the main drawback.
> The main issue I have is making my data highly available and resilient at low/no cost.
I think you'll find that most alternative, privacy-conscious services will cost something, primarily because they're not able to profit off of your personal data like Google and Facebook are. For me, I'm definitely willing to pay for that value.