Originally Posted by TheAnimus 
Isn't that sort of diametrically opposed to the idea of cloud computing (and live mesh?)
Kind of, but I think it'd be mighty useful too.
At present, I think Live Mesh offers 5GiB of storage, that's perfect for keeping things like my documents, pictures and favourites synced between my lappy, desktop and cloud. If I want to keep my music and videos synced, the 5GiBs isn't enough so I can't put them on the cloud - I'd still like to keep them synced between lappy and desktop, though.
I've been pleasantly surprised with Live Mesh can do so far, it's still at early stages but it has been getting better with each update. It could turn out to be very good, particularly when Mac and Windows Mobile support gets added.