Although, the usual two caveats still apply:

First, isn't the operative problem "for-profit monopolies", not "cloud data storage", as in, it just needs to be state-owned and open?

Second, in the vast vast vast majority of cases, people don't care because if someone stole all their online data, the problem would not be the data stolen. It'd be having to set up a new account as the password got changed, getting the card blocked and getting a new one, etc. It's like a wallet being lost, it sucks and is annoying but we don't all glue the wallets to the inside of our pockets just to prevent that. Meaning, even given knowledge of the issue, most would say the downside is not an actual downside to them given the convenience and the time it saves. (That's why it works in the first place, mind you)