I believe you could succeed if you put enough effort and offer something unique. If you can get a loyal user base to back you, it can succeed greatly. No one is going to give a shit if your product is cheap or fast unless good uploads are posted on it. Having a better file transfer service than the others is one that could easily be done. You could add torrent support, an extensive API(current filehost API sucks, plain and simple), or you could turn it into more of a social/filehost cross so that good uploaders don't have to rely on forums or top sites directories to get their files out to the world. Perhaps a profile/RSS feed per user?