Exactly, a home connection. You shouldn't be hosting servers on a personal connection... The rest of the listed applies to maybe .01% of users, who are probably the people that can find justification to pay for a business line at home.
Basically, for the normal user and most power users 500k/s upload is more than enough and probably not worth being called terrible.
Agreed, but is this case we are not talking 500k but 5000k, which is faster that many folks download.
If you really do need to be hosting, then there are plenty of good hosting provides that can provide you with a service far cheaper that at dedicated line at home, or even in the office depending on where you are.
Julian