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More details here:
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Hmmmmm, I think people will live to regret their reliance on flash and third party storage.
Flash in its current form wears out and cloud storage companies or the data centre providers can go bust and then what do you do.
Flash wears out, yes. Relying on flash for important data is quite silly though.
If a cloud storage provider goes out of business, another will buy it out and keep it's services online. Cloud is going no-where for now, it's still at the beginning of it's explosion.
It all depends on what you are doing with the data.
Flash is just far more convenient than optical disks ever were. Far more akin to floppy disks actually, you just copy a file across, you don't have to worry about closing or finalising a disk. and they are completely reusable.
Using flash as a write one medium (like you would use an optical disk usually) they are no less reliable, perhaps even more reliable than cheap blank media in fact.
Cloud storage is great as a backup, but I wouldn't rely on it or the only place to store things. It's also very good for sharing files with others. I've been using Dropbox for getting photos to people in the office because it's easier than trying to email a few dozen photos at a time.