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 Blossom is great. Should we integrate it into nostr relays as a websocket command so you don't need separate media hosts? Or use DVM so you can also pay for downloads?

Same "get blob by hash" command could be used by more advanced structures like merkle trees for large files that can be chunked and downloaded from multiple peers simultaneously like torrents.

Video file in a merkle tree could be used for streaming: you'd publish the latest merkle root every few seconds? 
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nostr:nevent1qqsr57cdyfuzsnrua6utr5y5ka8l2p0fjxgt4xeraj7df860qaje9qqpp4mhxue69uhkummn9ekx7mqzypzj80jc6w2mrvvk4xuvs2cr3d5ftjczk6papsjn492sdrd6r7kdqqcyqqqqqqgqzgxg8 
 It's fine if by "Media Server" you mean something that just stores blobs as is. The Media Servers we use on Nostr provide a lot more services on top of it, like compression, metadata clean up, mipmapping, global CDNs, etc. I don't think relays should be doing any of that. 
 While it’s exciting, I‘m not convinced that we should implement a new torrent protocol here. On the other hand we might need ways to support larger files (and maybe folders or some kind of grouping).
For video streams we already have HLS streams/playlists which are already natively supported in browsers.