That was the entire point.
Ports are useless (for storage) when you can simply stream everything you want from the cloud or your own person NAS.
That is not even close to being the same. On 3G there is barely enough bandwidth to have a decent picture on the actual cell phone, but tether to a tablet (or have a 3G tablet) and the bandwidth limitation shows itself compared to a native file.
Even worse is when you hook the phone up to a TV- even with a GOOD wifi connection a streaming HD file looks nothing like one of my pure blu ray rips that is the source file. Often the re-encoded video looks more like some random SD divx file- certainly not good enough for my frequent hotel visits (even on their tiny 27 inch TVs). The technology limits the bitrate too much. I have VERY fast internet at home to help alleviate that, but out and about I have to take what connection I am given.
With the actual file I can playback on the TV with a picture quality just as good as my dedicated HTPC at home can. Until we get internet as fast as Japan everywhere having local files will always be the better option for any screen larger than 10 inches.
If that wasn't the case, I would probably still have an iPhone. Streaming rocks for simplicity, but it sucks for quality.