My guess is that to many people in power, the benefits of using these web services seem to outweigh the disadvantages because they just don't understand the disadvantages. "It's OK - I set a great password!" There's simply nobody powerful enough to monitor what they're doing, independent enough to want to do something about it, and respected enough for people to listen.
We need independent bodies that act as national 'IT departments' and can refuse requests from the very highest powers, in much the same way that any other Head of IT can fire someone for gross misconduct because they were downloading torrents on their company laptop.