There have to be some point were trust has to be made. Apple makes you operating system and you patch it, update it and in all of this, Apple could easily do bad stuff and get your info if they wanted and dared to. You also have the individual developer working at Apple but doing bad stuff without either of Apple or you know about it to consider.
So, you are already made yourself a possible target. But the opportunity makes the theif, as we say here in Sweden, and if you data is put on Apples side of the internet they don't have the risc involved with processes running on their customers hosts nor do they need to expose their hypothetical theft to sniffers when taking the data over the internet. This and the fact that it is now possible to take a lot of peoples data and do some analysis on which brings value to the crime makes the cloud storage uncomfortable imo.
However, one could do a bit of weighting of risc factors here. Are you connected to the internet a lot? Do you use software new to you sometimes and so forth? This might have all in all a significantly higher chance of be hacked and robed. Apple is perhaps kind of a Boeing 747 'Jumbo Jet' in the way of people being afraid and we do extreme amounts of efforts to keep the planes from crashing, yet they are so safe that driving cars or walking in trafficed areas are multitudes of more likely to get you killed. There are no easy way to mesure the chance of Apple going bad here, as compared to the great statistics of very few crashed jumbos relative all the flights they have made. We have to guess and be aware of not being sure, but as far as I sums it up, Apple already have more data than being in any need to steal.
One can always say that not using iCloud is the only safe way but frankly you would need to disconnect from internet since we know hacks have been made and shown to work many times by know, if you have hundred procent safety as the only acceptable risc figure that is. On the other hand, iCloud do not increase security, since you would probably have local copies laying around in any case. Only if you got rid of the local files you could perhaps see iCloud as be more secure than local storage only? If now not the chance of Apple steal it in the first place will say?