iCloud works for me because I have some specific expectations for it and I don't expect it to replace something like Dropbox at all.
I expect and need iCloud to:
- sync my contacts/calendars/bookmarks across all my devices
- backup and restore for new devices
Edit: photo stream. Also works perfectly when I'm in a good wifi connection.
That's honestly about it. Both of those things work perfectly for me and there is no other service out there that can do those things. I have *a lot* of devices right now (2 computers plus a third that syncs, an iPhone, 2 iPads) and they are all perfectly in sync. When I got my iPad mini, a restore from an iCloud backup worked perfectly as well.
In short, it does the job only it can and it does it well.
As far as documents in the cloud goes, it can't beat Dropbox and I don't think it needs to. Use each service for their strengths and it will make your life considerably easier.
If it's not red and showing substantial musculature, you're wearing it wrong.
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