People use Dropbox and the like for a reason, they want certain to be available even in the event of a computer crash or hard drive failure.  Cloud storage like Storj also allows retrieval from any devices which is really where computing is going.  If I work on a presentation on my laptop I may want to present it from my iPhone with my micro projector for the iPhone.   I think the fact that people will have more drive space, just means that they will have more files that they want to protect files.

Cheaper hard drive space does mean cheaper Storj drive space because more people will put space online through farming.  That is what the network wants.  The money that can be mad will undoubtedly be driven by market forces.  In the beginning there will likely be more drive space than consumption.  As it catches on that will change.  I think over time there will be one or more decentralized storage options and there will be an open market for the consumer.  that is good no matter how you look at it.