Also what about locations were there is no internet connection? Plus if a company sued for access to the entire database "to supposedly look for pirated material" like Viacom with Youtube. I'll stop using computers if this eventually becomes the only choice or just use a legacy computer for files and a handheld for e-mail and web surfing.
Yahoo!, Intel, and HP... notice how that's the 3 steps of the process? Intel builds the components, HP builds the computer, and Yahoo! could provide the cloud services which the computer is tailored to access. This is a powerful partnership.
And what about "That service or data is not authorized for your use!" messages if they decide to censor it further then it already is censored. You will no longer have what little control of your data that you currently have. They (the cloud) will control it all including your access to it. And if you miss a payment... I can hear it now.. "Your data is now ours until you pay for further access to YOUR data...." Talk about blackmail.
When you start to take information from people, charge them to store their information, and when they cannot get to their information that they would normally have access to on their own desktops or laptops, you will probably have a larger number of upset users. Also, if traditional home internet connections are used, and we all know how reliable they can be, how bad will this affect access to information?