I could host the files on my 10mbit connection unlimited transfer. But I don't leave my computer on over night (noisy as hell) and that is just no good. But if we have more people who are willing to host we can have more than one server. Like if you can't connect to one you try the other one etc. The ideal, ofcourse, would be to have one server on fast connection with unlimited transfer (duh).
The bittorrent thing - I don't know but I think there will be fewer downloads. If you need a seeder I'm in