That's an awesome solution - but $8,500? Ouch. Still, largely better than most commercial rigs. You're right, of course - video podcasts (a distinct subset of podcasting) didn't last. They were way too technical for most folks to put together, setup and maintain.
The hosting costs alone of storing even short productions at a decent bit rate in the pre-HD days would drive most DIY'ers into the poor house. And then there's the bandwidth of having to serve up constant downloads for the files, which most providers do with burstable plans, meaning customers get a finite amount of transfer data plus the charge extra for every megabyte on top of that. So this is a huge bill.
Leo Laporte figured out a business model for his http://twit.tv
network, but that's a rare edge case. :)