I think there's a case to be made for self-providing your own dial tone as well, given how simple and cheap that has become, but I can't push that as I haven't even done it myself...
I'm quite happy paying for a service because when it breaks, I can reasonably expect the problem to resolve itself.
If I host my own mail, when it breaks I'm up shits creek until I fix it. Which depending on my schedule, could take a week.
Probably dies on the platform of "people don't have good broadband".
Rather then hardware solution, a VPS image solution would be best. A VPS image with core email, web, and file services, and an easy way to add more as needed.
We really need to decentralize the web again before we start connecting to the world wide google or the world wide facebook :)
The recent closure of reader really damaged googles reputation in eyes to the point were I can believe this story completely. It almost feels like they switched their slogan from "do no evil" to "do at least a little evil every day, just for the fuck of it!"