I suppose there's a component of citizen journalism and historical preservation in my thinking, too. This work isn't just for families, but also serves to document the history of a community, too.
I would jump at the chance to do work in this space full-time. What little I have done, helping friends and with my own family, was fun and rewarding. I've never been able to figure out how to finance it.
The lab described in the article and others like it handle the digitization part, but there's still the the "forever problem" of kicking data down the road onto new storage technologies / services, too. The digitizing is the easier problem. Once the material is digitized I feel like it's in a lot more peril for catastrophic loss.
I think something like "digital cemeteries / memory gardens", financed by endowments that allow them to continue to operate in perpetuity, should be "a thing". I haven't thought deeply about how to make it work, but the "shallow" thinking I've done says it's financially unsustainable.
I lean toward not-for-profit because I'd like to provide the services for as close to free to the clients as possible. I think preserving family memories and records should be accessible to everyone-- not just those with significant financial means.
While I think what libraries do with these labs is laudable, I worry that the self-service aspect raises the bar too high for some people. I think having a service component, at a reasonable price, to do the digitizing and to work to preserve the material in perpetuity would be a great thing.