I liked how urbit did it, just paste s3 bucket credentials into the app settings. A - its pretty cheap even for a terabyte of storage, B - it removes liability from the application not having to host user content, C - it increases decentralization, with many hosts in many jurisdictions able to host content.
EDIT: I went to sign up for a new account and right away I'm given the choice to host content on my own server, neat, I think I'll give this a try [1]
[0] https://web.archive.org/web/20240831230005/https://bsky.app/...