Yeah but once again this problem is statistical in nature. Admittedly the cloud isn't perfect but the question remains. Does the "Counter Party" risk outweigh the chances that my home spun solution would fail? Since the likelihood of failure on my part is orders of magnitude higher then the "counter party" risk would have to be huge, like really enormous. e.g Amazon would constantly have to be on the brink of imminent collapse. This is not the case.

If Amazon went out of business there is no chance at this point that the loss would be total and catastrophic. Its essentially a bank at this point. Its shutdown would be orderly.