I completely agree with your points. Again, I was speaking to people who manage their own SANs, and may be looking to use the Cloud as an additional tier of storage, with the same reliability as a local array. Reliable in the sense that they would never have to worry about Internet latency, network nodes going down, or anything else that they have absolutely no knowledge or control over and could potentially affect the performance/operation of an application, ultimately disabling me from meeting business requirements.
If there are no business requirements to meet, I have no arguments, the Cloud is where I'm at!