You use multiple computers in work, home and mobile devices (android, ipad). You want to share your files between devices and you use physical sources: an SD card, dvds, a usb stick etc. with every flaw that it implies: losing the physical storage device, you lose all your data. This can happen by theft, fire, loss or whatever.
So one sunny day, the cloud appeared. Everything yours is stored "somewhere" and even If you burn your computers and bury them 6 feet underneath the ground, you will still be able to work and retrieve all of them. But has it really solved anything?
As I see things, some kind of balance exists between "physical safety" and "virtual safety". You compromise the private safety of your own home and physical devices to give your personal data to a stranger, by signing an agreement that he will be trust worthy. But that's not only the deal.
Authorised sources (like "research" government agencies - theoretically) could be able to bypass this agreement and "take a look" in your data. Hackers, your jealous "best" friend, or your neighbour could gain access to your data, accidentally or not. Easier than breaking through your home, breaking the lock of your drawer and cracking the encryption of your laptop !
So finally, what is the point? Most of the people do not care or do not have the knowledge to understand all that. I see that the cloud has taken a step forward and at the same time 10 steps back. I do not own confidential illegal data, but I won't like to see my family photos fiddling around somewhere in the chaos of the internet.
I could use an encrypted truecrypt schema backed up in two or three sources, but it's not that easy for everyday work.
Taking about sanity, what is the safest approach?