Apple staff blew it but the cloud was not the issue. This guy had way to much ‘out there’ on himself. This could have just as easily happened without the cloud(and has). The truth is anything you have uploaded or use on the Internet is open to being hacked and stolen
When I buy tunes on Amazon, they always ask me if I want to save it to the cloud and I say no. When I got my new Droid Bionic, (I call her Ann), lo and behold, there were my tunes. What’s up with that?