Correct me if I'm wrong, but a core part of their messaging has been that they don't actually know what users are storing inside their cloud, has it not?
With Apple products, you're putting your privacy entirely in Apple's hands and assuming that their executives will continue to follow the same branding and product strategy that they've been pursuing for the past few years.
That said, Apple is probably the least bad option for phone + cloud for most people. But it's sad that that's the case.