Much like Tor this seems like a grey area. I'm conflicted on whether Tor is a good thing and have no interest in hosting content that I can't read.

If this can be made reliable without noticeably affecting the user experience, it could lower the barrier to building decentralized storage networks significantly.

We've had peer-to-peer livestreaming for years, on the platform. Here is a video of how it works: https://www.youtube.com/watch?v=nh0cewsyJlw

The code is here: https://github.com/Qbix/Media

Peer to peer Livestreaming is much easier than storage + streaming, because everyone is online at the same time, and can restream to each other using webrtc. If someone drops out, those listening to their stream can join someone else. It helps the livestreamer save money and not have to rely on Big Tech platforms ingesting RTMP.