That's not relevant at all to the iCloud "hack". It's a cloud service, the whole point is to store data online.
Those accounts were breached because celebs were phished and not because of bruteforcing, as some people were speculating at the time, or some other vulnerability.
Everyone gets phished. Fraud happens. Secret Questions are especially susceptible to phishing attacks. This has been known for about a decade. Apple had not updated the security protocols for iTunes, and in turn App Store and iCloud, for that time. The hack was definitely Apple's fault.
Yes, how can one trust a company's claims about privacy when the seemingly lose no trust over even such a high-profile incident? Celebrities phones has been targeted since at least the T-Mobile Sidekick.
Those accounts were breached because celebs were phished and not because of bruteforcing, as some people were speculating at the time, or some other vulnerability.