I feel like I'm the only person that has had zero trouble with iCloud. My phone backs up to it regularly (without my having to do anything whatsoever) and I've transferred my entire phone settings (and my wife's) more than once to brand new devices via iCloud.
Lots of things fall under the iCloud umbrella. A lot of them DO work. Just as you only think about the parts that work, ios developers think about the parts that do not work- so to you iCloud works and to them it doesn't even though you're talking about different things in the system.
In my experience, it truly does "just work".