Re: surely the lesson here is...
The cloud use that amuses me most is cloud based password safes. There is only one I trust in that regards, and that's because it was screened by people I know personally to do a good job of it - but even then I am NOT using it..
Oh, btw, iTunes backups are also a risk if you don't enable encryption, and I have frankly no idea how good that crypto is - you best enable bootup passwords and full disk encryption if you really want to be sure, and that is assuming you bother to shut down the device after you've used it.
Doing it right is still a lot of work.