Apple doesn't seem to have a good solution for backing up your iCloud account. As today's incident has proven, this is going to become a serious problem if they don't come up with one soon.
iCloud needs to be treated just like any other storage media: It must be backed up. Your data MUST be in more than one location, preferably three locations. People who don't realize this are going to get burned; the question is not "if" but "when".
This issue did not affect me because I don't trust the cloud. At all. You shouldn't either. The only positive thing about this is that it will make people distrust the cloud as the only storage place for their data.
The cloud can refer to any networked storage. I back up my documents to an offsite server with is no different than using apple's servers. Local storage would offer no protection in an event of a fire or theft (theives are likely to take my external ssd when they take my macs).
The cloud is not something to be afraid off or distrust. Just maybe stay away from apple's storage solutions until they get it right.