Apple and Google need to give people a chance to manage their own data.
iCloud is a tool that lets my parents just that. This means I don't have to do it for them and no one has to worry about losing years of photographs due to a device failure.
edit: I guess my point is that different people have different computer skills and I think it's great that the tools now exist so people on the lower end of that spectrum can sort this out themselves without having to ask for help.
I've moved everything to the cloud. I have nothing running at home except networking gear, and a small "server" that pulls nightly backups from the clouds to a local USB drive.
In theory i could probably do without the local server if looking at Apple/Microsoft/Google data redundancy (Microsoft is multi geo, i can't figure out what Apple is).
Sadly i need to guarantee that some random account closure doesn't remove all my data, so the backup server stays for now. The way cloud prices are going, it will only be a question of months/years before it's cheaper/easier to just utilize two cloud services, one for main storage and one for backup storage, and with projects like the data transfer project [1], you don't even need to download them first.