I put my latest AMV, Tsukasa's Story, up on local for a few reasons.
It's never been hosted before, and I have hosting like with a million different users(good people, I must add) that I thought it'd be good to stop sucking up their bandwidth.
As for not putting up any of my other vids on local.. It's either because they suck, or are on Tripod.
I don't want to clutter up the carrot with bad or already hosted videos.
I mean, it
seems there's a lot of space for AMVs on the server, but after a few months(at the least) that space isn't going to be enough.
I know for a fact that 90% of people that first join this site look for a spot to upload their videos, and when the found that you had to host them theirselves, they were surprized/displeased. (I know I was

).
With that said, about one new person joins the org every day. Usually one to two new vids pops up every day, too. If every noob uploaded their first through whatever videos then the carrot's storage space would fill up dramatically....
.... Just something to think about.