Opinions on Cloud Based Computing

When the Chomebook Pixel was first released I wasn't impressed like many others. A high price with limited local storage and offline capability. I've been watching a few reviews of the machine and finding that many reviewers aren't only impressed with it, it is becoming their main machine. It got me thinking that maybe I, along with others, am clinging to the past much like others who scoff at a Mac that doesn't have a disk drive. I'm really starting to see the potential in Google in this regard. I think that this really poses a major threat to Microsoft. If Google gets their chrome OS positioned as a capable work machine accessible from any Chromebook and easily shareable then Microsoft will lose many of their business and low price consumers. What do you think of Apple's iCloud and how do you think that they can evolve it in tandem with their OS's to stay relevant against Google?