I'm not telling others what to do, but the prudent thing to do is keep that critical data in YOUR hands if possible, not in the cloud.
The biggest problem with all of this, is, anything Microsoft offers or does, is always changed or abandoned in the future. What you buy today will change later. The only thing about Microsoft I trust is that they will change it or abandoned it.
Personally OneDrive has always been a pain in butt for me. I try to strip it out as best I can.
Another good reason to avoid using Cloud facilities -- as in this case you can never be sure if and when the conditions change so if you base your strategy (Backups / music etc) on facilities provided by these "Cloud Providers" you could (as in this case) be stuck or have to suffer a load of inconvenience while migrating to something else.
Google might be OK for now but again even with their deep pockets you can't guarantee the same won't happen further down the line.
With local HDD space SO CHEAP these days why bother with remote providers any more -- even while travelling I can take two fairly tiny self powered USB drives of 2TB each -- cost around 90 USD each -- and getting cheaper all the time.
The cloud is still IMO "Cloud Cuckoo Land" -- might be OK for corporations but for individuals -- avoid. !!
There's plenty of methods for file sharing these days -- and with fast broadband available nearly everywhere you could even make your own server for pennies -- Linux based --Google for LAMP or Windows based Google for WAMP.
As far as losing data due to Earthquakes, floods, house fires, accidental destruction, burglars etc - it's a simple matter to have more than one copy of backup and store it elsewhere -- even an office desk at work if you don't like Banks or haven't got convenient neighbour's, friends or other family members houses to store the extra backup in.
I think though in Earthquake / flood / fire situation you'd have more to worry about than some music / video tracks and PC backups. !!!!
I Agree with you ...Superfly
However there are other things such as "Uninvited Guests" (Burglars !! although in my neighbourhood these are pratically unheard of) or accidental damage, erasure or loss.
It always makes sense to have more than one copy of important backups - and store the extra copy in a different location --even in your work's desk if you haven't anywhere else you can use as an off site location.
I re-iterate again that important data is best handled by YOU -- HDD space is ridiculously cheap these days and Ms isn't the only company to change conditions mid flight. What about some mobile phone providers for starters. Loads of other examples I'm sure you can think of.
Also what is the legal definition of "Reasonable Use". They can make this up as they go along.
A bit like the Law they have over in the U.K --you can get arrested for "Liable to cause a breach of the Peace" -- and that seems to be up to any old "Plod" in the street (local police) to decide.
Some of my data is far more valuable than the equipment it resides on -- so I'm NOT going to entrust it to unknown servers with probably low paid and even lower skilled staff in some 3rd world country.