> presumably they could just hack the thousand cloud services
Well they don't need to hack them. From the Snowden leaks the government has a program called "PRISM". Where companies such as google and amazon just hand over everything from their servers to to government.
> If they can hack your phone
Not quite. With your phone there is nothing to hack as it is "pre-hacked" fresh out of the factory. You're opting in to use an always-on remote listening device.