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I am in rural China, so I have spotty broadband that is slowed down on purpose by the government. I would never run any software that is web-based because the government could simply start blocking access. As soon as one person used your site to make a graphic book about the evils of the Chinese government, you are blocked in this country.
The idea of web-based apps is nice but just not realistic. If you vanish or decide to change your business model (and don't say it will never happen), the time and effort people have put into your product are gone.
You mentioned you don't want unauthorized or illegal content on your site. Who will decide what is unauthorized or illegal? If I make an anti-communist book on your site, I have broken Chinese law. Will you censor me? Or report me to the proper authorities?
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