The story with the Cloud is that everything is distributed. The facts on the ground are that everything is more consolidated than it has ever been, mostly into 3 companies, and dozens of datacenters each.
I don't think the Internet has been this small in that respect since the early 90's.
Not really. For my daughter's birthday, I put together an album of around 100 photos to share with family. That came out to 386 MB at default quality settings in digikam, which would take 5 minutes to download at 10 Mb/s. Even for smaller things where maybe I share 10-15 photos from a day out, that'd take ~30 seconds to load. I can drop the quality just for sharing on the web, but I'd rather be able to just share it.
Likewise with backups, each photo is ~40 MB for RAW files, so 10 Mb/s can take all day to backup a couple hundred photos.
That's without even getting into video. Off the camera, video files are ~200 Mb/s. Backups of the raw footage take forever, and sharing at the original quality is a non-starter.
I would consider things like home movies and photo albums to be one of the main use-cases for a personal website (photo albums are pretty much what everyone in my social network uses Facebook for today). If you restrict to text websites, we could all get by with < 1Mb/s internet connections.
Backups are something else sure, but for personal hosting, the world is easier if you can just plop photos into a directory with maybe a simple html (or in my case xml) file and not deal with things like generating thumbnails or different quality settings.
10Mbps is barely enough to send the ACKs on a 250Mbps download. Maybe it's fine as a dedicated connection, but you might not want to be hosting anything on your home connection.
I don't think the Internet has been this small in that respect since the early 90's.