As Mat noted a couple weeks ago, the ambitious team at Xackup announced, then thought better of it and retracted, Bandwagon: an unlimited-storage service for iTunes backups to run over your Internet connection. Greedy fiends that we iTunes users are, with visions of multigigabyte libraries dancing in our heads, we apparently shocked and awed Bandwagon into the just-announced revamped pricing plan.
The new plan offers iTunes backup for $1 monthly, and backup + sync between two Macs for $1.50. Cheap, no? The catch: this is BYOS -- bring your own storage. At launch the service will support backup to Amazon's S3 cloudisk service, with basic FTP and Omnidrive links to follow within a month or two. The Bandwagon blog details the changes here and explains more of the why here. Considering that Xackup is also launching Xackmail (Mail.app & Outlook backup) and Neverfuget (iCal backup/sync to Backpack) tools, this company is making a serious play for Mac home/net backup customers on all fronts.
Will Bandwagon pull you onboard? I might consider it myself, and work out a "homebrew co-lo" agreement with friends or family to put a spare drive and FTP access at their place, reciprocating with the same at my place -- or just bite the bullet and start paying Amazon for disk space.