I implied that if a group of people want to use it as cloud storage, they can have the option as long as they pay the respective cost.
This is where you and I disagree. I say we should not allow bitcoin blockchain to be
largely used for something other than a "peer to peer electronic cash" ledger, in this case for cloud storage.
The "cost" you are talking about is also a
soft preventive measure and it can not work against this type of attack where there is an incentive. We need a hard limit on the witness version 1 size (similar to version 0).
Keep in mind that this could only be the start. There is nothing stopping others to continue using bitcoin as a cloud storage at a much larger scale effectively rendering it useless as a payment network.