It didn't say that...
"The cloud is the place to backup our personal and home flash stores" doesn't say that flash doesn't need backup does it?
It would be lovely - I use Time Machine and cloud backup at the moment (Mozy) and it works OK.
In the terabyte iPad era, I imagine you'd be choosing your device based on ergonmic use / HID use cases, but then again maybe not with the right peripherals.