Looks very interesting, and potentially revolutionary for what it means to be in control of your own data.

Out of curiosity, how much space would one have to allocate to run the relay on one's own phone?

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My full db is about 700MB, but that includes everything I posted + everything people posted that cite me (all zaps, replies, DMs, etc)

Wow, that's a lot less than I thought.

So, it's only traffic that is directly related to my nsec, and not everything I read or what using nostr?

Correct. It is a local and private relay that allows you to own YOUR data, and keep it backed up so you can restore it at any time, such as when your follow lost inevitably gets borked.