I agree that this approach to what is quite plainly to so many people a hugely significant flaw in the method of delivering 'home entertainment' by Apple. Also I cannot believe that this was something that they simply failed to foresee. Even with a fibre connection (which I don't - 8mb copper at its absolute best), the 'cloud' option is still dependant/reliant on an ISP having no outages. Apple had always been about users having the 'nowse' to know what is what, and kicked back against a 'big brother' approach.
We need to have the option to use 'cloud' if we so choose, and has the infrastructure to support the required technologies. But also be able to determine a 'home based' solution, where 'cloud' fails to deliver the quality of user experience Apple 'touts' as a driving force behind what they do.
Nearly 50,000 people taking an interest in this topic has to mean something to Apple, or risk starting to alienate people that have woken up to the good stuff Apple does, only to see them returning to inferior options but options that do allow a degree of self control and management of the media for which we have paid good money for.
I'll never go to Microsoft, BUT Linux does offer options, and is becoming easier to manage 'out of the box'. Please Apple, hear your user community, and accept that the cloud and streaming are not the only option. NAS connected storage is a sensible, viable, and eminently reasonable option