Well put. The cloud is, for many many things, the best option for both businesses and consumers. It attempts to commoditize difficult and mundane tasks such as provisioning new servers or personal backups. The cloud offers the hope that both can be done better than everyone doing it themselves.
Nothing is keeping you from selecting a cloud service that offers more security or having backups or fallback servers in your home or office. If that's important to you.
The cloud doesn't solve ALL your problems but it has a real chance to solve many of them.
I'd rather put my faith in someone else managing the hardware and IT overhead rather than in me doing it.
Setting up and maintaining a RAID backup solution at home, and actually using it is very hard.
Once nice thing about cloud services where users store data is that it's transparent that they're backing up local data. They're just using the service.
Nothing is keeping you from selecting a cloud service that offers more security or having backups or fallback servers in your home or office. If that's important to you.
The cloud doesn't solve ALL your problems but it has a real chance to solve many of them.