Yes, I was talking about hive/imagehoster repo.
We have made some changes to the codebase (not yet committed, AFAIK) to account for performance changes required by the move away from Amazon S3 storage, but most of the work so far has been server setup and experimentation (e.g. devops work) rather than coding (e.g. setup of the infrastructure described in the post such image caching, haproxy, imagehoster, fileservers, etc).
Our plan is definitely to move to a decentralized storage system, but until more work is done, I don't know what form it will take. Figuring that out is the big remaining task, and will require a lot more investigation and experimentation. In the long run, we also don't want to be responsible for all the load either.