Thanks for the explanation, Roger.
But their initial message led me to iCloud was still quite misleading. When my iPhone storage was almost full, iCloud showed me a message saying that you can keep your files/data/videos/photos to iCloud for permanent storage and delete your local data to gain more space. It didn't state that iCloud was mainly for sync'up, but emphasized on storage and permanent storage. I thought Apple brand is reliable, and trusted Apple, which turned to be wrong.
I understand a physical media is not reliable, but cloud storage brought a different level of services due to the cloud service's nature: the server side has backup/recovery mechanism, especially, Apple/iCloud brandname are quite fooling people like me. I intended to think Apple/iCloud are quite reliable, but then many cases showed me that they are not trustworthy AT ALL. Their tech support lacks knowledge seriously and often provided contradicted information (I have many examples from their email and voice recording, which they gave A answer on day 1 and then changed to B answer on day 2, and then back to A on day 3... while A and B are completely opposite.
So the only useful knowledge I got from my bad Multiple experiences(not only this icloud data loss issue) with Apple is that NOT to Trust Apple and iCloud. Their technology are VERY WEAK and their attitude towards customers' interests are VERY POOL.