CTS, I bet the TOS says they are not responsible for security breeches. If they are, it will shut down cloud services overnight. Just like lawsuits killed doctors dispensing free medical advice.
I'm not sure about iCloud, but I know the Dropbox TOU says no warranties implied. It's not responsible for what happens to your data. And also, it reserves the right to snoop through your stuff to see if anything is "inappropriate". That said, services like that can be made secure by encrypting it yourself before you upload. I use Dropbox to share stuff that's not sensitive.
But CTS is right, this incident doesn't condemn an entire industry. You get what you ask for. You want a non-secure way to share or store files use those services. You want something that uses world class security, then do that. There are some drop-box like services that offer real security.