In the interest of full disclosure... I can barely muster trust enough for gmail. Actually, I don't trust gmail, which is why I don't use it for anything important or personal. I certainly would not put my child's photos onto a cloud service and expect them to be safe. And from what I understand, these people put, not only their data on iCloud, but their ACTUAL DEVICES are administrable from iCloud. That seems insane to me. It seems that this is the inevitable result of any such system.
I guess I am just a bit surprised at the surprise being expressed here. USB drives are not THAT horrible are they? They seem, to me, far more reliable backup methods.