If my secretary adds an appointment to my calendar (remotely via the office) after I've already booked something myself, it's likely her newer entry will not be "the truth" at all, and my prior appointment will be written over. I could then miss my proper appointment because I didn't "verify" it prior, and that would suck.
...sorry, got carried away there.
The bit you're missing is that with iCloud, when you book something yourself it automatically gets pushed to the calendar your secretary sees, so she never adds a conflicting appointment in the first place. The pervasive concurrency of data is going to stop a lot of these conflicts happening, so the process of resolving them is required less often, and eventually becomes unnecessary.
People worrying about whether iCloud can possibly know which is "the truth" are not seeing the wider aim of Apple, which is to eliminate the possibility of conflicts happening at all.