There is quite a fundamental shift going on in the hosting industry now towards cloud hosting and it's being driven by users. We should embrace this rather than saying it's all fluff - the benefits of cloud hosting have been well proven.
I've been using StratoGen's cloud hosting for ages and it's been bulletproof. I wouldn't dream of going back to legacy hosting now. I can only think that a lot of those who question cloud hosting haven't used it. It certainly doesn't feel as nice as having your own dedicated server somewhere but I don't get the calls in the middle of the night which I used to get when my dedicated box went down.