The odds of a house fire and my inability to access critical data is significantly lower than that of a cloud malfunction like the one that occurred today.
How many users wound up losing data because of that bug? In comparison, how many houses were lost to fire today?
How many people had deadlines or papers due and couldn't access their data? Many more than couldn't hand in their papers or make their deadlines because of a house fire.
This response is about privacy, not offsite backups.