"Backing up" to the "cloud" is not backing up. If the machine that has been backed up goes completely DOA due to a failed disk, you cannot restore it from an off-site backup because you won't have any Internet access, because you won't have an operating system loaded.
Nonsense. Load the OS and then recover over it. By that same logic, you can't consider a local tape backup as a backup.
And, of course if you have an Apple product, you CAN restore directly from the internet. If you have an iPhone, and back it up to iCloud, and drop the phone in to a vat of acid, upon purchasing a replacement iPhone that device will be properly restored. You can similarly do that with your Mac laptop or desktop.
Carbonite, a well know cloud backup service, has instructions to make a bootable recovery CD to restore your machine. Or, buy a new machine, get it "booted", and launch their recovery software. If they have a Linux option for recovery, you can get a recovery Linux disc/key fob to boot your machine and do the recovery -- even if you're recovering a Windows installation. If you're not connected to the internet, then you have different issues. But that's just the truth of living in a connected world.
Would it suck to restore 2TB of OS, software, movies and photos from a cloud backup? Oh yea, it sure would. But that's not to say it isn't possible.
In a similar anecdote, at work, I had a bad memory stick that corrupted my Windows boot volume. Fortunately, I had a Linux partition that I had just hanging around. I booted that up, downloaded Java, downloaded my IDE, installed SVN, and downloaded the source code I was working on. After a quick lunch time trip to get new memory stick, I was back up and running, albeit on Linux. So, in that sense, I had an "ad hoc" cloud backup (i.e. the source code of my work). I used "the internet" for my tools, and the local SVN server for my "data".
I run Macs Time Machine to an external drive, so its backed up every hour. Time machine is awesome. If my house is struck by a meteor, well, I'm SOL.
What I should do is a monthly or quarterly back up to a disk and take it off site. But simple truth is, I have yet to run out of space for photos on my phone, and so I won't be losing those.
As far as code, I have a local SVN repository set up, but I host it on my DropBox volume. So, every time I commit, it's zipped up to "the cloud". I have several GBs of free storage from DropBox. If you don't like DropBox, Google Drive is 15GB and free.
Can DropBox go out of business? Sure it can. Can it vanish over night? Sure it can. But it's an offsite mirror, so whatever I have local is archived off site as well. DropBox can "go away" and I haven't lost anything.
And if DropBox vanishes at the same time a meteor hits my house, then, yea, my source code is in for a bad day.
Another option for source code is to set up a free source code repository on BitBucket. BitBucket allows for free private repositories, GitHub only allows for free public ones.
I haven't done this, I'm content with my SVN/DropBox solution.