While I appreciate your point, I'll have to disagee.
The idea of "storing your wallet in the cloud" relies heavily on assumptions about current and/or future bitcoin users, which might not be met.

First of all, your idea assumes that a user can access the "cloud" or the net at anytime, anywhere at their will. Besides that, it also assumes that the user lives in a place with established infrastructure and reliable net access. We can go a step further and also assume that a cloud remains stable and the provider doesn't go bankrupt etc.

Encrypting the wallet like you describe is certainly the right choice for a number of users however, it also introduces additional layers, complexity and potential points of failure.

Having a private key stored in "my brain" and nowhere else gives one peace of mind in a way no other option can.
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