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@Velocio
I mentioned local storage as a cache within the box so that anything you listen to frequently would instantly play and things you don't listen to much would have a few second pause to start streaming.
Otherwise you could choose to store things on a NAS and everything is very close to local... it's the other side of your room.
As to cloud stuff...
Cost of cloud storage, 1TB per year = $100 at the moment, and prices keep going down.
Cost of bandwidth, I have 150MB down for £18 per month (Virgin Media).
My entire music collection of 92k FLACs is 2.1TB.
If it is possible to queue up multiple cloud accounts, or a mix of local + cloud... I could have the whole thing lossless for circa $200 per year, accessible at that lossless quality from anywhere.
As for where things are headed, 5 years ago Dropbox didn't make a lot of sense, minor convenience, and now it makes a lot of sense. 10 years ago Dropbox would've been pointless. 5 years from now, and storing 2TB in the cloud and listening to it at maximum quality is going to be fairly normal. But one should start building this soon, as in 5 years time we'll be paying rent to Google, Spotify, etc if we don't work out how to control our own media.