OK, fair notice here, but much of what follows is only tangentially related to backup, at best. But there is a point, I think, to my rambling.
First, let me start by reacting to Tony Pearson's continued defence of TSM as a backup application that offers economies of scale. And before I really get going, let me emphasize again the definition of economies of scale: economies of scale offer a declining marginal cost per unit. It is what makes many industries go around: automotive (to the degree that it is actually going around these days!) and chip manufacturing to name just two. It is what makes Intel so successful: the 1,000,000 chip of a given architecture costs pennies (although the first chip might have cost them $2bn or so!).
I have a belief that is somebody can figure out how to achieve real economies of scale in backup and recovery, they are going to achieve two things: they are going to get rich, and they are going to get significant (dominant?) market share. Although I think that EMC has gone further than anybody else in achieving economies of scale with backup, I think there is still a great deal more that we can do. We as an industry, or we as EMC, however you wish to read that.