I think everything should be a block since it really is anyways.
Adding MIME Types
What if your server wasn't set up to deliver certain file types properly? A common occurrence with MP3 or even SWF files. Simple enough to fix:
AddType application/x-shockwave-flash swf
AddType is specifying that you are adding a MIME type. The application string is the actual parameter of the MIME you are adding, and the final little bit is the default extension for the MIME type you just added, in our example this is swf for ShockWave File.
AddType application/x-httpd-php xyz
-User's "My page": user chooses what blocks (customized weather reports anyone?) and newsfeeds he wants to get there (perhaps even adding new external RSS feeds), reminders, buddylist, bookmarks (hmm, autoimport madness), etc, public or private
-User personal page: contributions by a given user (somewhat like the profile info) with customizable appearance and page structure, blog features... current modules like galleries or calendars already allow personal items, but until now only wiki or custom blocks can put them together. I believe such a page would create demand for a lot of nice modules, like webcams, music/video dbs, etc. It would also use the millions of teens that blog aimlessly to help useful sites
-User wallet, a password protected system like ByteHoard for users to upload personal or public files (limited disk quota, perhaps file compression, etc)
-Admin ability to grab all users personal content and put in public area Well, not like that, but say you have 200 users that DID import their bookmarks... that's halfway to getting them in MyDownloads, right?