Pretty much this. Cloud storage isn’t perfect, but it sure does make proper 3-2-1 backup hygiene easier. 3 backups, on 2 different mediums, 1 of them off site. Cloud storage accomplishes both the 2 and 1, because it is both a different medium and off site.

The fact that you can automatically sync remotely is a big bonus too, because off-site backups historically have a problem where they fall out of date without active attention. For instance, if you have a tape backup system stored in a warehouse across town, those tapes are only as up-to-date as the last time you took the time to drive across town and update them. But with cloud storage, you can automatically sync your folders to keep things up to date in near real time. Plus, your traditional off-site backup is only as secured from things like natural disasters if you’re willing to travel fairly long distances to make them. Those tapes in a warehouse across town won’t survive if the entire town is hit by a natural disaster like a wildfire or flood.

For instance, maybe I make an update on my laptop, and then want to access it on my phone. Even with SyncThing, my laptop and phone won’t sync with each other unless they’re able to find each other on the same network. If I’m not on a trusted network at the time, (e.g. I’m at work on my employer’s WiFi, or traveling and using hotel WiFi) that makes syncing difficult. But with cloud storage, they can both essentially use that as a relay. My laptop updates the cloud, and then my phone pulls that update. Now both devices are up-to-date without actually needing to discover each other on a trusted network.

Natural disaster -> no longer can access everything you have online

Meant as a negative to cloud vaults?

In that case: Bitwarden (as an example) can work offline and records can be exported from it.

Personal disaster as well.

If something happens to me and I am incapacitated, or worse, my wife or my brother can request access to my vault and without any action in my side for a week they will have access to my vault. (Emergency access feature in bitwarden)

So it does not add the stress of needing to call ALL the utility companies, bank, school ... To reset passwords or request emergency access.

I saw that first hand with my brother in law who had an accident and went into a coma. We were lucky that his computer wasn't locked and all his password accessible on it.

You can have both and keep a local copy via export once in a while. If the cloud goes down the also most likely your bank website. If you're talking about other types of secrets then the first sentence will apply