iCloud is overrated, it was not encrypted at rest for ages. I much prefer using Time Machine and keeping the passcodes in a PW manager, and maybe a safe deposit box as a backup.

iCloud is a whole lot of things. What you describe is a backup storage solution. Time Machine does not handle: - photo sync between devices and users - shared storage between devices and users (no, not backup, but actual directories and files etc) - private relay - state sync for games and other apps - etc etc