You could use a raid setup to mitigate hard drive failure. Your points are totally valid.
Right. It depends on how much you value your data. Cloud services boast some ridiculous durability value like 99.9999999% or probably even higher if they mirror it across multiple data centers. RAID mitigates single disk failures (or multi-disk failures, depending on the type of RAID) but does not protect you from malfunction of the device itself (imagine it writing random data all over your disks), accidental deletions, ransomware attacks, or a house fire.
Cloud isn't inherently good or bad. It's just another tool that you can use. You just have to be aware of the risks and plan accordingly.
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