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It’ll only work if you can direct play everything and depending on your ISP upload speed, you may need to transcode any remote streams in which case a Pi will probably burst into flames. A comparable option would be a micro form factor office PC like an Optiplex with a recent gen Intel processor. The iGPU in these works great for transcoding.
If you want something more serious you can do a custom built PC with a Fractal Design case (Define 5, 6, 7 or Node series) which are made to hold a ton of 3.5" drives. Again here all you really need is a newer Intel CPU and SATA ports (and/or an LSI SAS card).
Yeah sounds like it might be a fun project to try it out with a pi but it’s not realistic for sharing outside of my household