@simonwoods exactly my thought as well. They can charge a premium because they deliver a better product. I wish iAWriter had better integration - they are on an island with how they choose to add Dropbox support (although hopefully that might change in the future).
Also, re: Jobs. He was also bragging about cloud computing back in 1996. Turns out we should all just be rich and soak ourselves in wi-fi. Problem solved!
@simonwoods I think they cut down the retaining deleted files to a single year. Not sure if that changes your calculus.