I have recently created a PHP/MySQL app which stores PDFs/Word files in a MySQL table (as big as 40MB per file so far).
Pros:
- Uploaded files are replicated to backup server along with everything else, no separate backup strategy is needed (peace of mind).
- Setting up the web server is slightly simpler because I don't need to have an uploads/ folder and tell all my applications where it is.
- I get to use transactions for edits to improve data integrity - I don't have to worry about orphaned and missing files
Cons:
- mysqldump now takes a looooong time because there is 500MB of file data in one of the tables.
- Overall not very memory/cpu efficient when compared to filesystem
I'd call my implementation a success, it takes care of backup requirements and simplifies the layout of the project. The performance is fine for the 20-30 people who use the app.