Apple is thinking about building new cloud-based web applications ...
Hopefully by "expand", they mean "fix".
Seriously? DropBox is the easiest mode of backup I've seen. Install it and use it like a regular folder, and you're done.
Maybe I'm over reacting but please don't say Apple is slowly trying to make the move to having our computers/phones be dummy terminals like Google tries with Chrome. I might have to switch to Windows (if Windows hasn't done the same thing) if they end up something like that.
I like having my applications and my data on my computer. I don't mind a Cloud to synch it/keep backup, but I don't like the idea of having to have accessibility to the cloud to even use my computer (Not just for having to have wi-fi access but also that leaves a ton of power in who's ever hands you decide to keep all your data/applications on).
Apple wants to sell hardware, to do that they need attractive native apps to draw people to the platform. Helping developers make better apps, in a way that provides a consistent experience across Apple's platforms helps with that goal.
I think if Apple turns iCloud in to a WebApp Platform/Store then it'll be to try and remove barriers to entry to Apple hardware and to try and keep developers happy to be building on Apple's Ecosystem.
YEah, maybe that's a small possibility, but I'm sorry, I just think that's putting a lot of power in who ever's hands you decide to trust if you go to a model where your computer is just a dummy terminal.