How can people be fed up with 'the cloud' when most people don't even know what it is? You really think those MS commercials are enough to make people understand what the cloud does?
Like most techies you're completely focusing on the wrong thing. Most people don't care about clouds, rails, ruby, or any other tool. They care about solved problems. They care about storing their pictures in a way that they can access them from anywhere and never lose them. If it's the cloud and RoR that makes this happen they are happy. If it's duct tape and bubble gum (more likely :) ) they are still happy.
To most people (other than techies) the end result is what matters, and not the tools you use to get there.