One of Steve Job's best friends, Larry Ellison, thinks the "cloud" term is stupid as well. It's seems to be just a new hip marketing buzzword for what used to be called servers, as in client-server computing.
However there can be one slight difference today. A server is usually a network computer that your company, or the company that you browsing, owns and knows where it is (city X, building 14, room 7, rack 12). The cloud can be the arrangement of network computers which a company can rent (or use time on), but that computer could be in some random data center who knows where on any given day (North Carolina, Fremont, Oregon, Bucharest, etc.). It could even be a non-existant virtual computer.
I have no clue where my iCloud data could be on any given day.
Maybe even slightly scary.