I was thinking of adding Pogoplug support. That way storage would be much cheaper, although backing up to a Pogoplug at a friend's house may be much less reliable than backing up to S3.
I second the motion. I have a ton of storage on Dreamhost that I could totally be using as backup. (And have tried a bunch of times, but it's a pain getting cron and rsync to do the right thing, and then remembering to set it up again when my computer gets changed around...)
Keep in mind that they don't allow unlimited private backups (they allow 50GB of backups store in a special backup user account), the data you store there is supposed to be web accessible.
+1 on this. Any decent NAS software (FreeNAS, OpenSolaris, etc) with an iscsi target will work great with the (free) GlobalSAN initiator and Time Machine.
True, but one big "gotcha" to this is that there is no way to do a complete restore from a time machine volume. There is no iscsi initiator on the OS X system DVD (and therefore no way to select your TM backup for a complete system restore).