Sorry but "cloud" or not, SAN or not, the MS/Danger fail was a stunning failure of process. Who cares what the underlying technology was or how it failed? What matters is that a multi-billion dollar software company actually managed to loose, permanently, their customers' data through obvious carelessness, through either lack of a backup in some fashion or other (and don't even try to argue they could have had an excuse - "multi-billion dollar company" "reputation" backups might be sort-of hard maybe - perhaps - but MS is supposed know what it's doing). Lightning and Asteroids wouldn't strike five different carefully chosen locations...
My guess is that this will hit MS really hard over time. Even if they actually were hoping Danger would dry-up and blow away, they've now done the worst case scenario to customers. Repeat after me "never let MS near your data...".