The Kaleidescape system in general, is fantastic, although the lack of a full library and some immersive soundtracks are definitely issues that need solving.
It's unfortunate that providing this type of service while meeting all the laws and keeping Hollywood happy results in this kind of pricing. Luckily for those of us mere mortals, Plex server on a Shield with a NAS or attached hard drive and a UHD drive for ripping, get us most of the way there. I am concerned about the lack of UHD (or even BD) discs going forward though.
I will say the $3k upcharge to go from 6TB to 12TB is pretty egregious.