I think he's missing the point. "The Cloud" is not some magical faraway land where we ship our data for safekeeping. The value in the cloud is convenience, the ability to have one calendar, one music library, one book of contacts that is available ubiquitously on any device, anywhere in the world.

There's no real reason to use the cloud for data backup anyway, since uploading large files over DSL is a pain, and hard drives are holding steady (not!) at $100/TB.