I would never ever trust cloud storage to keep my stuff safe. I will always back up everything on local storage. Usually in more than one place, at least the imprtant stuff.
HOWEVER, I don't need lots of storage on every device. I could easily get by on, for example, the 16 GB Nexus tablet. No problem what-so-ever! Not because I rely on cloud or streaming, but because I wouldn't need to store much data on that kind of device.