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Unlikely, as cloud storage providers can't be trusted completely. They be like "but it's encrypted. trust me bro", but every time they get the chance, like when a weakness is detected in the cipher, they will peek or let some government peek. This is how magically your competitor ends up with your business secrets.
They cant be trusted, but I think the average person will just trust them.
I mean look at how many people who (supposedly) just sext on facebook or instagram or just SMS/MMS, or even send confidential information thats not end to end encrypted. People don't give a shit about privacy.
If the majority is okay with it, then they could just stop selling devices with local storage. And you'd have no other choice.
The average euser does not trust them, they just don't care...until they should have cared.
Yes, but there will always be an important crowd that does care and that's why cloud storage can't completely replace local storage or home NAS. It can maybe replace it to like 50% max or so, but never completely.