It will vastly increase reliability, though. I can think of many reasons why having it on a general purpose hard drive is a really bad idea (turned off accidentally, freezes due to bad apps, virus infection, etc, etc).
In general although I like the idea of an open source version of this I think the problem becomes so much harder as you don't have a central authority to prevent misuse of it and therefor have to build that into the protocol from the beginning.
Hmmm, I think this may be one of those wedges that gets stuck in my brain and ticks over for a while. Its quite a fun problem to try and solve.
If bitcoin can use a peer-to-peer system to come to a consensus on the validity of financial transactions, it should be possible for a peer-to-peer cloud storage system to come to a consensus on how reliable a node is, and how valuable it is to the network.
Uh... If it was on your computer's hard drive and your hard drive failed, it wouldn't be much use as a backup system, would it?