No, this gives the control of the cloud to the people using it. Security conscious people or people that want to keep their data as their own data (rather than in the nebulous state of being on someone else's hardware, thus ownership is murky) are (mostly) the ones who would want to use something like this.
At this point to consumers cloud just means internet accessible storage.
Apparently, if it happens on/over the internet, it's in the Cloud these days.
I think private cloud are a pretty good alternative. Think about how many FIOS/internet box sitting at home unused most of the day, that would be a good use case.