So instead of using a free ad sponsored storage point where you are what is being sold, you pay $50 a year for a storage point that is hosted offshore, is encrypted, etc.
The one problem that the cloud faces is that applications need to be decoupled from storage. ie. you should be able to have your documents with provider x, but use the word processor from providers y or z to access them. Each of the apps at the moment set up their own storage silo, there is no real 'my documents' or home directory for the cloud