It's depressing that people can be told, in the article, "I'm sorry 'The Cloud' is not an acceptable nor practical solution", and then reply "Hey, why not store your data in the cloud?" And so many replies along those lines, too! At one time this site was full of smart people who had passed their exams. Now it's full of people who don't even read the question. Like I said, depressing.
The rest of what you say, I don't even know why you are arguing with me. Obviously if you have only a small amount of data, the cloud is a good solution. $20/year is no big deal. The problem comes in when you have a lot of data and it would cost, say, $2400/year to store it on S3. You see the problem? How many fire safes and external drives can you buy for $2400? How many do you actually need in order to have a reasonable chance of keeping your data?
But I entirely agree that ludicrous RAID5 servers and piles of disks are a silly idea. I know so many stories about people keeping all their data on RAID5 and assuming it is safe. RAID-anything seems to increase the risk of catastrophe, probably because everything is in one basket. And that is the core of the solution: spread the risk. Different disks, made by different companies, stored in different locations. Bit like the cloud, really, except entirely under your control, and without a recurring cost.