Well, i´ll tell you as a SaaS provider to small bussinesses and web software provider to large enterprises.
The main reason we sell to large enterprises an on premise solution is because they basically don´t trust us or our platform providers (aws, appengine) with their info.
Just look at github firewall install and other on premise solutions, they are available because of a fundamental and justified lack of trust on third parties.
Good luck on the civil liberties (rights) angle, i believe it´s not such a utopian but more of a practical concern who you trust your info to.