Flawed article
The Register has just confused the terms "cloud service" and "thin client"
There is no mandated design pattern for the cloud or what a cloud service has to look like. Apple are using the cloud to offer synchronization services allowing the user to keep more control over his or her data. Google Docs by contrast is fundamentally designed to ensure the structure and content of your documents are visible to Google. They aren't developing it from the good of their hearts, they are developing it because in exchange for using it, they are getting you to sign in to a permissions model where they can target ads at you better because they can see your documents. This has some serious privacy and ethical ramifications.
Over time i believe more and more users will recognize Apple's approach allows the user to retain better control of his / her data. Cult of Mac ran a good article just prior to WWDC saying a reliable source has leaked that Apple will be upgrading Time Casule to work with their cloud solution, so the cloud service can provide you with roaming access direct to your data - but you can retain the data under your own control.
For many people there is immense appeal to Apple's proposed model. Yet again the Register have missed the real story, the legitimate differences of Philosophy and have instead taken a blinkered view of Apple's technology so they have a platform for cynicism. What the Register miss due to their cynicism is that both Google and Apple are sincere in their philosophies. While Apple retains tight product control, they make it consistently subservient to creating a software experience they think the customer will love. So consistently no crapware on new machines nor the equivalent attempt at socially engineering sales as e.g, printer manufacturers do who deliver anti customer printer driver designs like hiding the option to switch off printing in color. The Register consistently attempt to cast Apple in the same mould as these attempts at social engineering for profit, which means they miss the very reason for Apple's success. Apple of course charge and make profit, but the secret to their success is it is always in exchange for what the user feels is their best effort to make something of value. That is a fair exchange.
Personally, though I think Google are sincere, I trust a company less who tells me I can have cake for free, so long as I sign over access to my personal data, than one that is unashamedly a commercial business, who deliver the best goods they are able to design in exchange for a healthy price. The later model to me, is clean and simple and ultimately, by not positioning itself as a free social good (with the string attached that I have to sign over access to my private data), one I feel I can trust more. Many will feel the same way as me and many won't, but Register, try to be a bit more analytical and less cynical.