I can't express how much I love hetzner doing this. There is a huge market for people who just need some instances and reliable/cheap object storage to run their apps.
5 euro/m for storage and 1 euro/TB for traffic, it appears. Fairly unattractive if that traffic change includes internal traffic. Their Storage Box and Storage Share products are much cheaper. And of course you can self-host S3 if you need lots of it.
What is the attraction of this product on a budget host like Hetzner? Is it a sign they are moving more upscale?
Presumably s3 will be highly available. Storage box is just a share on some server and has quite a lot of downtime. Okay for backups but not for your main data. We'll see if their s3 is indeed better, but it should be, given that price difference.
The storage cost of their S3 doesn't bother me that much. It's the bandwidth cost that makes me cringe.
Storage Cloud is backed up nightly, though as you say it has occasional downtime. I have Storage Box which is not backed up, but it's on raid 6, and so far I haven't heard of data losses with it
I'm not saying you're going to lose data or that it is a bad product. It's for a different use case.
I have a cluster of servers where storage box has been used for passing data between serves for batch processing. Not a lot of data but if it is not available, the while system is down. I learned the hard way. Plus they sometimes change IP addresses which is bad of you have a strict firewall.
But for backing up postgres and some other files, Storage Box is great value and it's not a problem at all if it's down for a few hours.