In countries with faster internet than Australia, this concept probably makes sense. If you have the NBN, you can probably make use of this new feature of the Plex streaming media solution as well. In short, you can now use Plex to stream your content from Google Drive, Dropbox and OneDrive, obviating the need for any form of local storage whatsoever.
If you have the capability of putting your media in the cloud — and you’d need a fairly heft upload pipe to do so — you don’t need to store your media locally anymore, but of course, you’ll pay for downloads every time you stream it (unless you’re on a very fast, unmetered connection).
Plex Cloud is in beta, so you’ll need an invite to try it, as well as a $5/mo Plex Pass subscription. If you meet all those requirements, you can give the service a try, but bearing in mind that Google Drive, Dropbox and OneDrive all prohibit storage of any prohibited content, so the utility of this service might be more of a “because we can” rather than a “because it’s good”.