Though I've considered doing it, I haven't taken the plunge to host my iTunes library on S3. As with most web-based services, it just makes me nervous to not have a local version of something like my iTunes library that I would want to enjoy even if my high-speed connection wasn't working. I'm looking forward to the new Airport Extreme to which I intend on connecting a redundant (hardware mirrored/RAID1) 500GB drive to share among all of the machines on my network.
Anyway, Lifehacker has a post about a guy that has put his iTunes library on S3, so take a look if you're interested.
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