I have files on my computer from the 1990s and 2000s. If we lived in the cloud-centric world those projects that I did back then would probably be gone forever since I'm not sure I would have kept paying rent on them.
There's also no retrocomputing in the cloud. I can start DOSBox on my laptop and run software from the DOS era. That will never be possible in the cloud. When it's gone it's gone. When a SaaS company upgrades, there is no way to get the old version back. If they go out of business your work might be gone forever, not just because you don't have the data but because the software has ceased to exist in any runnable form.
It all seems like an ugly dystopia to me. I don't think I'm alone here, and I think these things are also factors that keep development and a lot of other things local in spite of the advantages of "infinite scalability" and such.
I'm not saying these things are unsolvable. Maybe a "cloud 2.0" architecture could offer solutions like the ability to pull things down and archive them along with the code required to access them and spin up copies of programs on demand. Maybe things like homomorphic encryption or secure enclaves (the poor man's equivalent) can help with privacy.
... or maybe having a supercomputer on my lap is fine and we don't need this. Instead what we need is better desktop and mobile OSes.