>Obviously you perceive value in the local storage that the rest of the market does not.

lots of people perceive higher quality media as having value, in fact there are markets for those people, just not the largest market which values convenience more.

> the largest market which values convenience more

To me, having my music library on an USB stick is convenience. I don't have to worry about whether my car or something in it has an Internet connection just to listen to music.