I hope you all will excuse some shameless self-promotion.
I had this same problem, so I set up my own WebDAV server. Problem was it wasn't secured (SSL), so I added that... and that drove the cost up for just myself to more than MobileMe... so I thought why not sell space there and even out my costs. :)
Yes, it'll be a pay service. But, it'll be a lot cheaper than MobileMe. At least, that's the plan. I need some beta testers to size out how much server it'll take to support a given number of users.
If you're interested,
check out the site, Get syncin', there's a survey form linked from the front page, I'll use that to start inviting some folks when I'm closer to ready.