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Maybe in a few years, but these devices are for the here-and-now, and in the here-and-now, even if it always worked perfectly and 'the cloud' was totally safe and reliable, the fact is Wifi is NOT ubiquitous, and cellular data can cost $5/GB.
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Very good point. Cloud technology is not perfect yet, but I have trust in it. It is serious.
According to an article I read,
the cloud wars worldwide has collected $830 million, spent on file and backup storage services in 2011, which is expected to nearly double this year to $1.2 billion!
I will personally not mind an SD slot or any expandable storage for the Nexus 7. But I do agree that wifi availability and speed has to be better because as APK mentioned, it can cost a lot, especially if you have a crappy data plan.