I think it will provide horrible incentives to demand ever greater storage space, driving up the costs of storage in the same way that PoW coins have driven up

I think it will provide horrible incentives to demand ever greater storage space, driving up the costs of storage in the same way that PoW coins have driven up the cost of graphics cards. It's also likely to have pretty bad environmental externalities as manufacturing said storage will have both energy and material waste side-effects.