It is a neat idea. If it isn't feasible, it is for a technical reason rather than market blaming. Markets work. There is a reason why every nation in the world does the vast majority of its resource allocation through markets. It is by far the most efficient way to transfer value and resources around. This isn't to suggest that we need to worship at the alter of markets. Markets might be the most efficient way to transferring around resources, but if trying to reach perfect efficiency isn't your goal, markets are not going to work. Giving grandpa his social security check isn't an exercise in efficient resource allocation, it is an exercise in basic humanity. Markets suck at maximizing happiness, health, equality, and all sorts of things.
...which is why when I see that they are shooting for some sort of market based cloud storage, I don't balk. I don't want my government to be an amoral machine allocating resources to maximize value, but I am pretty content with an utterly amoral cloud storage service. Personally, I think the idea is brilliant if it is technically feasible and secure. It reduces storage to a base resource bought in bulk that costs somewhere close to the physical cost of the storage and is mass distributed. I'll take an amoral resource transfer system of Microsoft any day of the week. I am a bit skeptical about the technical feasibility, but in principle, it is awesome.