don't trust CLOUD
I don't trust a cloud to hold all my sensitive information (i.e. birth records, SSN, License #'s etc). I use the google cloud becuase my smartphone (Thunderbolt/android) utilizes it. It stores my contacts and calendar information as well as the programs I download.
I have an external drive to back up all my information. I am also not in the car or on the road long enough to have to justify buying a 64GB iTouch. If I want to listen to a lot of music I will trasnfer it to my 8GB iTouch.
I can see the conveince of the iCloud as far as music and movies go. That has always been my biggest complaint that I can't sync my iTouch with my iTunes at work without wiping it clean and then going home and syncing it there and wiping it clean. That is why I have given up using my iTouch and have stuck with my Thunderbolt and using DOUBLETWIST to sync my iTunes playlists with my Android phone. I also use DVD Catalyst to copy movies (ones I own) from DVD to my computer and then transfer them to my phone.
I will continue to live in the cloud when needed, but not all the time....who knows, maybe in 5 - 10 years I will be thinking different......I will Google my name in 10 years.....see this entry and probably laugh!