Before last winter's patch, spontaneous 600-800 man battles were quite playable, and 1200 was doable with a reinforced node. However, something went terribly wrong with that expansion, and we now have crippling lag with even 600 on a reinforced node. The issue is causing a lot of upset amongst the game's space-holding contingency (who happen to provide the majority of advertising for CCP). It's an issue that CCP needs to fix soon, or they face a mass exodus of their veteran players.
You're failing to take into account how peer-to-peer works: most people have a share ratio of about 1:1. On average, any one person can only be held accountable for distributing one copy of something they seed.
No offense, but you must have been pretty terrible to have that experience in highsec, or you talked a lot of smack and pissed people off. I've played the game for over two years, spending significant amounts of time in highsec, lowsec, and nullsec, and I have never been killed in highsec by another player. Not once. Avoiding conflict in high security space is quite easy if you keep your wits about you and don't smack like a child.
If we were to adopt this attitude, the "Singularity" would never occur; it comes as a result of our own innovation and progress.
Or, you could take that money and buy a 250 gig SATA drive for your PC, thereby not having to worry about pesky things like slow upload speeds. With your plan, it would pay for itself in about seven months.