I completely agree that data loss is a huge issue. Cloud storage usually comes with pretty high redundancy, but if you're using a service you don't know much about, it's definitely safer to keep your own copy of the file.
A use case I had was that my Mac was running out of hard disk space and I didn't want to carry around an external hard drive or get a new Mac, just for more disk space. I tried cleaning out as much unused applications and files as I could, but there still remained large and old files that I wanted to preserve to keep a record of them.
Moving it to cloud storage for archival gets me the long-term storage and by deleting the local copies of it, I was able to get back a good chunk of space on my Mac. Not everyone may have this use case, but it was one I came across where deleting the local copy made sense.
A use case I had was that my Mac was running out of hard disk space and I didn't want to carry around an external hard drive or get a new Mac, just for more disk space. I tried cleaning out as much unused applications and files as I could, but there still remained large and old files that I wanted to preserve to keep a record of them.
Moving it to cloud storage for archival gets me the long-term storage and by deleting the local copies of it, I was able to get back a good chunk of space on my Mac. Not everyone may have this use case, but it was one I came across where deleting the local copy made sense.