Yes, but I was comparing against freemium models, and people with lots of data and little money would need to use (and wouldn't be able to afford) the "premium" side of "freemium".
I don't. Nobody does. My point was that the utility pricing model is no different from the freemium model here, in that both eliminate those customers.
I know what it does, and you are not going to be getting prices that you can afford from anything backing to S3.
This (S3's storing everything so redundantly) is what I see as the main benefit that tarsnap would get you, since the encryption itself is the easy part---just GPG your dump before writing to tape.
Now, I might be strawmanning you. What does tarsnap get you in particular that tapes do not?
And those with just too much data and too little budget :)