I think that is a scare tactic used by these guys to gain business. I've had cds, dvds & hard drives since 1999 and they are perfectly fine. After the whole megauplaod thing, I'm not too quick to upload a non-business file to any of these "cloud" sites.
Why not walk around with a USB Flash Drive then? it would be portable & private.
I'm not sold on "cloud" hosting.
For business purposes, I think it's ok but personal? nope.