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Free Free Hosts How Much Space Should They Have

I agree,2TB that is way too much. I mean, you can use that much but, I would say 500 GB - 1TB would be good if you kept the file sizes down. You should allow files over 1GB by requests only, not on free will.
For a free file host, you would want at least 600GB of storage total. If it is popular though, you might want to think about 1TB-2TB storage.
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1-2 TB? That's more than what I have on my laptop+server(at home)+vps+external HDs combined.

Someone's gonna eat y'all's lunch.

We're back to that Business/Hobby thing again. HD is a One-Time cost. That's different from bandwidth. So 2TB sounds nice and juicy to me for a business hosting computer. I have 1.76 TB on my Quad core XP project machine. In "Today's Dollars" it's prob about a grand. Chain it to a secondary throwaway processor box for CPU spikes and you're good to go.

We're well past the half way point of Web 2.0, which introduced all kinds of loss leader services with either delayed payments or non-cash informational collateral. Now those companies are starting to reel in the nets to complete their five-year-plans.

Right now this field is seen as petty cash and not worth the attention of many big hitters.
I just hope he isn't planning on hosting this from his own computer instead of a proper server.
1TB hard drives are only $135 a piece if I remember right last time I checked. Using a NAS array or even USB2/ESata would let you couple as many of them as you need to build the required size, without an external device like that you'd be limited to about 4 hard drives total using modern SATA mainboard systems.

The killer especially with a file host is bandwidth. 2TB/month of bandwidth with my current provider is about $60 a month, just to put things into relative perspective as far as operating costs would be.

While technically it could be done on just any old connection, you'll find very quickly that a home connection will be excessively slow not to mention most ISPs state in their terms that you are not allowed to run servers from your home over such connections.

Each subscriber should get about 500MB of file space to start with, possibly as high as 1GB per subscriber if you have enough space to play with.
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Are you talking about how much you need to run a service, or how much to provide to the end user? For the former, that can vary a lot, but 1-2 TB is more than enough to start a file hosting service. If the latter, no need to offer that much space. Reserve large space for upgraded plans.
Well i think if you expect to have a terabyte of storage, then it will probably come with a lot on junk mail etc. attatched. That's a lot of storage, and if it comes with web hosting, then you better get ready for some big adverts on your website lol!

Nothing is ever free...
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