In the event you haven't gotten it yet (or for others wondering who this may help), I would definitely invest in the largest possible SSD hard drive, if you deal often with photos &/or videos, professionally or otherwise. In fact, I found this discussion while in the midst of having to "thin out" the drive on this rMBP, which is 500 GB. It's the Achilles heel for me, storage, and simply on principle (and with so much of my own local storage capacity in my office) I'm not going to pay monthly fees forever to store my own things elsewhere *and* have it continue to eat up all my Macs' drive space, even if I send very little to "the cloud". As others described accurately (and helpfully, without contradiction by Apple I note), the cloud drive organizes shared things one opts into - for example, I sync calendars and email so I have what my desktop and laptop have while traveling with only an iPhone (it would be the same w/iPad). The things I want to sync are "in the cloud" AND on the local devices. I have several Terabytes of photos, about a TB of them on my Mac, and nearly 500 GB on my rMBP. I'd need a 2nd mortgage were I to "rent space" for all of that. So each device is synced for what I need for work while each device handles the huge doses of photo and video images I feed them, on their own hard drives. (I don't auto-cloud the massive-sized video/photo stream from the iPhone.) So now I've gotten another new huge storage drive, but my local Macs still are full of iCloud AND Dropbox files which I'd hoped to temporarily leave "in the clouds" (what a misnomer!). But true, they're actually taking up local space, which is why I'm here weeding out photos. That all works great for the iPhone fan, but my life (old fogey that I am) has me doing work at a big hi-res screen, with big images - and large files. I'd go with the solution someone suggested of more options, by device, whether to store locally or only on the cloud, or both - especially if you're incurring monthly parking fees. As they say, YMMV and this is only me, but I know I'm not the only person who is a longtime user of Apple *computers* and who would rather not save the same humongous image/video collection twice, both on the computer and in the "hidden" (but real) storage space set up on local (Mac) devices. So in this day of "trending" You-tubing, selfies, and raw-image mega files: think storage!
Short version: "Cloud" drives are your drives, but backed on a server farm your various devices can access, for free or (new-improved) rental costs, the way of the trends set by Adobe and MS. Aimed at the mobile market, all. For serious photographers, videographers, and others who can't see renting space while not gaining any drive space, I'd say, do what works for you. But know the realities, and if possible, as with screen size, memory is better bigger!