This already happens and will become increasingly popular IMHO. I know that my broadband connection allows me to utilize 60 GB/month so I could host my own sites now (in theory).
The only problem I see is with cable connections you tend to get lumped in with a zillion other bleedin' idiots on a network hub so busy times can bog your site down considerably. Of course T1 lines (and better) continue to come down in price with better options being available so if you can afford a T1 or higher, what's stopping you from hosting?
Lastly, I'm no webhost but I do know that the number of dos attacks has increased considerably over the years. I've heard that many host went from a few hundred dos attacks per month to a few hundred per week and many are up to a few hundred per day and worse.



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